Yes, in that case the whole function of the token is to be pegged to USD and, as you noticed, the way to keep the price from rising is to create more tokens. Will they destroy those tokens to keep the price from then falling?
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That's not correct. The system uses a 200% collateral and smart contracts to create new tokens. Basically every btsUSD is backed by 2 USD and that keeps the peg stable.
http://docs.bitshares.org/bitshares/user/mpa.html
Thanks for the clarification. Perhaps with the rollercoaster ride in cryptos, it is becoming a popular "safe haven" between trades - at least in terms of fiat dollars.