As an aside, the phrase "rhetorical question" has a special meaning, but the adjective "rhetorical" just means anything relating to discussion. I was trying to say that you veered off into a meta-argument about the words we were using, which unfortunately I'm now continuing.
This is the flaw I was pointing at. Others have said that while there's some research there doesn't seem to be a solution for it. A cryptocurrency that scales it's size in rough proportion to its trading and thus keeps prices in check with maybe slight inflation would be interesting. It's almost surely difficult to accomplish given the restrictions in what you can do in a distributed consensus type of setup.
I'm not convinced it even matters though. Of all the important things we need solutions for in the world cryptocurrency doesn't seem to help any than I can see.
These already exist, with all kinds of incentive schemes and target inflation rates. If you're saying that deflationary Bitcoins can't possibly "win" in the long term, but something else could, I guess it's plausible and I don't know a lot about that.
I do know that Bitcoin was started partly in protest of inflationary Fed policy.