The biological clock is evolutionarily advantageous because it
allows organisms to anticipate changes in conditions before they occur.
Since changes in gene expression are quite slow, organisms that can
avoid this lag between stimulus and response are at an advantage.
Phytochrome senses the light of daybreak. This is (somehow)
transduced to activate LHY/CCA1 transcription. LHY/CCA1 reset the
oscillator by activating morning genes, and repressing any TOC1 that
was being expressed.
Short-day plants can easily be explained by a flowering-inhibitor
that has circadian rhythms of sensitivity. Short day plants flower when
the amount of inhibition drops below a threshold limit, as daybreak
falls ever later.