Implemented. Seems to work well. Changed the design and behaviour of the backoff as discussed with Matthias over IM. Documented in comments, reproduced here:

%% 5) init can return a 4th arg, {backoff, InitialTimeout,
%% MinimumTimeout, DesiredHibernatePeriod} (all in
%% milliseconds). Then, on all callbacks which can return a timeout
%% (including init), timeout can be 'hibernate'. When this is the
%% case, the current timeout value will be used (initially, the
%% InitialTimeout supplied from init). After this timeout has
%% occurred, handle_pre_hibernate/1 will be called. If that returns
%% {hibernate, State} then the process will be hibernated. Upon
%% awaking, a new current timeout value will be calculated, and then
%% handle_post_hibernate/1 will be called. The purpose is that the
%% gen_server2 takes care of adjusting the current timeout value such
%% that the process will increase the timeout value repeatedly if it
%% is unable to sleep for the DesiredHibernatePeriod. If it is able to
%% sleep for the DesiredHibernatePeriod it will decrease the current
%% timeout down to the MinimumTimeout, so that the process is put to
%% sleep sooner (and hopefully for longer). In short, should a process
%% using this receive a burst of messages, it should not hibernate
%% between those messages, but as the messages become less frequent,
%% the process will not only hibernate, it will do so sooner after
%% each message.
%%
%% Normal timeout values (i.e. not 'hibernate') can still be used, and
%% if they are used then the handle_info(timeout, State) will be
%% called as normal. In this case, returning 'hibernate' from
%% handle_info(timeout, State) will not hibernate the process
%% immediately, as it would if backoff wasn't being used. Instead
%% it'll wait for the current timeout as described above, before
%% calling handle_pre_hibernate(State).

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