For those who need a little more help understanding the interaction between MG1, MG2, and the ICE's RPMs, this link explains it well.
Toyota Prius - Power Split Device
Also, Ford's hybrids (not sure about any other brands) use similar concepts in their transaxles (except the AWD Escape uses the same AWD setup as the conventional AWD Escape, not a separate motor in the rear like Toyota does).