As a former professional driver covering upwards of 100,000 miles a year, I am probably qualified to answer this question.
Yes, Google Maps will alter the planned route if the traffic some way ahead builds up and a faster route is available. It's not foolproof by any means, and is quite slow to take rapidly building traffic into account (such as on a motorway suddenly blocked by a big pile-up).
You would find the Waze app useful. The map colours are different, and it takes a couple of minutes to set up when you've first downloaded it (type of vehicle, fast/economical route etc), but its routing ability and traffic-avoidance are leagues ahead of Google Maps.
Waze will show drivers a progress bar in long queues, and also in average speed camera zones. It also has a small GPS speedometer shown at all times. Waze is actually owned by Google, and a some of its data (such as locations of current accidents) are fed across into Google Maps in real-time.
I find Google Maps better for planning a route before setting off, but Waze is better for navigation on the move.
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Using Google Maps on iPhone as a sat-nav new
Using Google Maps on iPhone as a sat-na.. new