The initial deflationary period is important for adoption. But in the long run, increasing scarcity of coin could jeopardize the health of the miners. Bitcoin has a transaction fee structure to handle this, but taxing transactions is hardly the way to get people to adopt your currency. Also, BTC and other fixed-supply coins suffer from early-adopter windfall effects. The early miners of bitcoin may own a significant fraction of the economy.

I'm devising a "Friedman Coin" or "Free Coin" to fix these issues. If you're interested, drop me a line.