[VonGallifrey]

> This creates a completely wacky incentive structure where, instead of incentivizing producers to only expend enough resources to satisfy market demand, and no more, they're instead incentivized to expend as much energy as possible, at all times.

This is not entirely correct. You pointed out that the reward rate is relatively constant which limits the income of all miners combined to 1.25 Bitcoin/minute. They really can't be spending more then that on mining. That includes Hardware + Energy + Salaries + Offices + Warehouse. Any single miner is also only going to get a fraction of that 1.25 Bitcoin/minute and anyone spending more then what they get will find themselves with a deficit.

That is also just until ~May 2020 when the next Halving is going to occur. They have until then to figure out to decrease their spending on mining to be lower then 0.625 Bitcoin/minute.