Notice that the peak oxygen was 23%, 2 percent higher than today. Their theory about the decrease is some world-wide forest fires around 10 million years ago. (on edit) That would be a nice example of negative feedback. As oxygen concentration rises, things burn more easily.
NEW BRUNSWICK/PISCATAWAY, N.J. – The first, high resolution continuous record of oxygen concentration in the earth's atmosphere shows that a sharp rise in oxygen about 50 million years ago gave mammals the evolutionary boost they needed to dominate the planet, according to Paul Falkowski, Rutgers professor of marine science and lead author of a paper published Sept. 30 in the journal Science.
From a steady 10 percent – the level at which dinosaurs flourished – the oxygen percentage rose to 17 percent 50 million years ago and then to 23 percent by 40 million years ago.
"In the fossil record, we see that see that this rise in oxygen content corresponds exactly to a really rapid rise of large, placental mammals," Falkowski says. "The more oxygen, the bigger the mammals. We argue that the rise in oxygen content allowed mammals to become very, very large – mammals like 12-foot-tall sloths and huge saber-toothed cats. They paved the way for all subsequent large mammals, including ourselves."
There were placental mammals on Earth at the time of the great extinction of dinosaurs about 65 million years ago, Falkowski says. They were, however, tiny, limited creatures; the extinction event itself, while eliminating the dinosaurs, did little to further the mammalian domination of the planet. It was the subsequent spreading of shallow seas, the increase in plant life – and photosynthesis – in addition to the consequent increase in oxygen content that gave the mammals the boost they needed, according to Falkowski.
http://www.sciencedaily.com/releases/2005/10/051003080102.htm