Well, they are going to stop sooner than later with the increments I think... Mercedes and BMW have had a displacement battle for decades now.. the battle seems to have topped out at 6.x Liters (for now). The whole "Green" thinking and depleting of Oil reserves / price of gas are definitely going to slow down the displacement race... Supercars are a dying breed...not just yet....but if things keep moving like they are...then it will happen...
Efficiency is becoming the new focus...which is great because motors are still making a ton of power with a lot less pollution. Just take a look at the new porsches and Lambo LP560-4.
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