Do you know where you read this as not sure that makes sense. You would want to reduce your bids if you were getting a lot of traffic on a term but it was not converting but if it is converting then you would want to keep the bid as it is so as to maintain the position you are in. Chances are by dropping your bid you would drop down the ad positions which is likley to decrease CTR.i've also read that when you have some traffic, impressions, clicks etc, and have attained a good CTR, you should reduce your maximum bid.
As you mentioned if the kw and ad perform well then the actual cpc you pay should start to drop. In my opinion rather than dropping the bid it is better to work on improving the ad and kw quality so that the cpc starts to decrease without having to lower the actual bid i.e. testing out different ad texts, using good quality landing pages etc.
Others may well suggest different though.
Hope that helps a bit.
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