Regarding point (2), it's not "giving up" for a miner to shut down the equipment temporarily. It can even be done automatically. Mining is competitive. A miner

Regarding point (2), it's not "giving up" for a miner to shut down the equipment temporarily. It can even be done automatically. Mining is competitive. A miner who shuts down while revenue is less than electricity cost, and starts up again when fees rise, will outcompete a miner who just leaves everything running even while taking losses.