No, they do handle it. For one, a buffer allows brief sections (how brief is defined as part of the MLP spec) to go higher than the DVD read rate; as long as sections immediately surrounding it are lower than the DVD read rate.

And if there is a sustained passage that's higher than the DVD read rate, for too long a period of time, there are ways the recording engineer has of modifying the master to make it fit.

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Matthew J. Hill
matt@idsi.net

There's priciple that says for each bitstream that a (lossless) compression algorithm shrinks there is a bitstream it expands. I suspect anything 'musical' would never fall into the pathelogical case for sustained periods.

It should be possible to artificially construct such a data stream, though.