Its called variable difficulty, or simply vardiff.
I like it.
It is constantly re-adjusting, even for Erupters.
This must reduce the volume of network traffic considerably, and give a much more stable supply of data to the servers.
It's something most other pools have had for the better part of the year

. Yes, it does dramatically reduce traffic, since most users don't bother to change their own difficulty. Probably less than 10% of overall users, and less than 50% of the top 100 users on any given pool (the ones who benefit the most) actually adjust their difficulty pool side, so vardiff massively reduces overall traffic to the pool.