The evolution was CPU -> GPU -> FPGA -> ASIC. Now that we're at the ASIC stage growth is going to slow considerably. There's no longer order of magnitude gains to be made.

>at the ASIC stage growth is going to slow considerably

Yes, buy these are 110nm v1 designes, it looks like they will be able to squeeze something like 10x per watt by moving to better process and iterating on design. And probably additional 10x in cost by ordering more than current quantities that are in the ballpark of the smallest possible order.

Right now entire network runs at speed equal to all hardware in first two Avalon batches (300 and 600 units). When batch 2 and 3 and BFLs hit in the future, everything else is going to be wiped out. But then it will be wiped out again by the next iteration.

bitcoin does not work that way. Inflation decreases at a set rate.

Difficulty adjusts week-to-week. Being the only guy with an ASIC is like a license to print money. Being the 10,000th person with an ASIC will be like trying to mine with a netbook today.

Supply will always be constant however how it's divided changes -- people who previously enjoyed lack of competition are now having their feet held close to the fire.