Lyle McDonald explains it this way:
In general, it's true that metabolic rate tends to drop more with more excessive caloric deficits… But here's the thing: in no study I've ever seen has the drop in metabolic rate been sufficient to completely offset the caloric deficit. That is, say that cutting your calories by 50% per day leads to a reduction in the metabolic rate of 10%. Starvation mode you say. Well, yes. But you still have a 40% daily deficit.
But, keep in mind that apart from weight loss, semi-starvation has other not-so-cool effects on your mind and body. The other physical effects from the Minnesota study on semi-starvation included a significant drop in physical endurance, reduction in strength of about 10%, and sluggish reflexes. Those that were the most fit initially showed the greatest deterioration. In addition, heart volume shrank about 20%, pulses slowed and their body temperatures dropped. Concentration and judgment became impaired. Sexual function was reduced and all lost interest in sex. They had every physical indication of accelerated aging. But keep in mind, this was a year-long study, not something that happened in a just a few days or two weeks of eating restricted calories.