I'm sorry, but there is no "in theory" about iron rust protecting from further corrosion. Iron rusts, plain and simple, the rust grows and flakes off and corrosion continues.
Aluminum however is different, aluminum dioxide is harder than aluminum and it doesn't flake off, so aluminum will oxidize forming a thin skin barrier preventing further oxidation.
but steel and iron, I'm sorry, there is no theory that iron oxide provides any kind of protection to further corrosion. anyone that told you that doesn't know what they are talking about.
Bill, I only said "in theory", because there have been problems with it in the past when used in particularly corrosive environs, like near the ocean or chemical plants. Sorry, but you're wrong on this one (I've been designing bridges for 25 years, starting in the Mecca of steel bridges, Pittsburgh, PA). Weathering steel (Most commonly ASTM A588, also known by its US Steel trade name, "Corten") has been around for about 45 years. It has a chemical composition that does, indeed, result in a uniform protective coating of rust that forms on the surface, preventing moisture from reaching the rest of the material so that it prevents the typical "packing" and flaking associated with typical steel corrosion. Some states (notably Michigan) started using it in the 1960s and had bad experiences because many of their bridges were in heavily industrial areas, and so stopped using it. So it was controversial in the industry for a few years, until the industry came up with better guidelines on where not to use it.
But, if you don't believe me, here's what the American Iron and Steel Institute says about it (granted, it's a little like reading BP's page on oil spills cleanup, but for purposes of this thread, they are the experts):
AISIMaybe Kerri would like to chime in on this one, since corrosion is her specialty.