That's not at all how it works... 3.5 Tx/s stays steady and the price increases the power it takes will only increase because miners will turn on more machines

That's not at all how it works... 3.5 Tx/s stays steady and the price increases the power it takes will only increase because miners will turn on more machines but due to increased difficulty will mine the same amount of bitcoins. A clear example of tragedy of the commons. Where the commons is new blocks. And the tragedy is the waste of electricity and labour.