Is techlogy going to keep up with the increasing difficulty?
Absolutely. It is designed specifically so that it can and will.
This is a genine question and something i've wondered. I fear that it will become to expensive for miners. Am I missing something?
Yes, you are missing something.
Difficulty is designed to automatically adjust to current hashing power. If the global hash power increases, then difficulty increases. If the global hash power decreases, then the difficulty decreases. If the global hash power doesn't change, then difficulty doesn't change.