Actually, I suspect that it would become a real problem.
Let's assume that it is impossible to have more than 100 leading 0-bits in an SHA-256 hash. When the target becomes 97 leading 0-bits, 1/8 of the eligible hashes are actually impossible. Therefore, the actual difficulty will become 1.14x of the apparent difficulty. 1.33x for 98 bits, 2x for 99 bits, 3.41x for 99.5 bits, 5.33x for 99.7bits, 14.93x for 99.9bits, etc. This will seriously hinder the growth of the apparent difficulty and we may never hit the boundary of 100 bits (unless someone with massive hashing power suddenly push it over the boundary).
Perhaps I am missing something, but didn't you just demonstrate why it might NOT be a problem? The actual difficulty would rise above the apparent difficulty, but the apparent difficulty would never rise to the point where a valid hash would be impossible, thus allowing the network to continue functioning.
If someone with massive hashing power could push it over the boundary, then blocks would stop until the next difficulty adjustment after which mining blocks would resume. Am I right?
Sorry, I meant " I don't think it would become a real problem."
However, if someone with massive hashing power could push it over the boundary, then blocks would stop, and stop forever. The next difficulty adjustment will happen after 2160 blocks are found, which will never happen.
Remember: difficulty adjustment happens every 2160 blocks, not every 2 weeks