I am really not sure why this limitation or factor was added to the network
To ensure that there will be new block mined once every 10 minutes on average.
but that’s definitely to keep up the demand and supply of bitcoin ratio exponentially.
Not sure what you mean. Difficulty adjustment simply makes bitcoin supply completely inelastic to demand fluctuations. It doesn't matter what the demand will be, the currency will inflate in the same prescheduled pace.