If the goal is to keep a certain percentage of people in each division and tiers constant, then they have failed miserably. Khyber 1 has shrunk by nearly 80% in the last year and will continue to shrink at around 80% a year unless they make changes. We're also at the point where Khyber 2 will start to shrink dramatically because the outflow of people falling out of Khyber 2 (from the skill squish) will now greatly exceed the inflow (since Khyber 1 is now small and there won't be many people left who can fall from Khyber 1 into Khyber 2) and Khyber 2 should start (if it hasn't already) to see hyper deflation. Then this will then eventually happen to Khyber 3, 4, etc...
I did a back of envelope type estimation for what the skill squish should be to prevent inflation and I estimated something like 5-10 points per month. We are so far over that you would have to assume that this was their intention all along, this isn't simple rounding error. If they have math professors helping them, I assume they aren't idiots, either. Their goal is to push people out of Khyber 1 at the least and maybe the end game is to reduce the number of people in all of Khyber.