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Of course, like most things in Polkadot, this can be adjusted via governance, and thus a vote of the DOT holders. So if this were seen as a major problem by DOT holders, they can create a new runtime with a modified inflationary model (by changing the parameters here) and vote on it to replace the current one.
Yes and no (although no parachains currently do so). Substrate is rather flexible, and the block production mechanism can indeed use proof of work, even for parachains. In fact, Substrate-based Kulupu, although a solochain and not a parachain, does this.