I think this will create a damped feedback loop. Over time, the delay caused by "don't chase surge" will mean that the prices remain higher longer. Drivers will realize that the surge doesn't instantly vanish. As a result, surges will mostly get the drivers who were about to end a shift, or were going to begin a shift in an hour or so, or are in the most need of $$$.

This behavior means that surge pricing will result in a smaller increase in drivers, but a one that more closely resembles demand, which is exactly the kind of efficient allocation we'd hope for.