The flow is not increased; it stays the same if the compressor is turning at the same RPM. The volumetric flow rate is dependant on the velocity of the fluid (air in this case) and the cross-sectional area of the pipe. Assuming the compressor is turning at a constant rate, the volumetric flow rate will be constant (however, the mass flow rate to the engine will increase as the density of the air is increased due to the compression of it). If the cross-sectional area is reduced, then the velocity must be increased to conserve energy (neglecting any thermal losses). Hence, the flow rate into the compressor is constant. The mass flow rate into the engine is increased due to the compression of the air (makes the air more dense).
The increase in velocity does not help reduce the pressure differential across the compressor blades; it actually does just the opposite - increases it. If P1 is the inlet pressure and P2 is the outlet pressure of the compressor, then the pressure differential is P2-P1. If the velocity at the inlet is increased, P1 will be decreased. Since P2 is still at the same value and P1 was decreased, the differential is increased.
Yes, if the differential is increased, the compressor will have to apply more energy to compress the air. Since the compressor is driven by the turbine, and the turbine is driven by the engine exhaust gas, and the engine exhaust gas is a function of the fuel/air mixture, and the amount of air in the cylinder is dependant on the density of the air which is compressed by the compressor, the extra effort required by the compressor is normally compensated for by the extra exhaust gases expanding across the turbine blades. Once the energy from the turbine is lost, the compressor losses it energy as well and cannot continue the compression cycle.
Remember what happens once the compressor stalls, the air in the charge pipe surges back through the compressor and out the inlet (assuming the BOV didn't relieve it first). That is the surge you are trying to prevent by keeping the compressor compressing. The compressor keeps compressing as long as the differential pressure is high enough (of course it must be driven by the turbine as well). If it drops too low, the compressor will stall. If the compressor stalls, and the previously compressed air in the charge pipe is high enough, the compressor will surge. Surge generally happens when the throttle plate is shut suddenly. This greatly reduces the exhaust gases at the turbine, which is driving the compressor. The compressor had enough rotational energy to continue rotating temporarily until the energy it had to put out to continue compressing was too great to overcome the trapped air in the charge pipe. Hence, it flows back (surges) through the compressor.
I think the confusing part is the compression ratio. If it is too high, the turbo will surge. If it is too low, it will cause the compressor to stall, which creates the situation that causes a surge also. The pressure differential should be as stable as possible to prevent stalls.
That's about all I know about turbos! Hope it helps some and doesn't confuse you more!