Are you saying that stabilizing the price wouldn't increase the number of transactions and/or the percentage of real transactions (i.e the ones not aimed at hoarding and speculation)?
everyone in the world would be hoarding that currency essentially forever only to be sold to another investor/hoarder when they badly need money.
This is your stance. Then you relay to the trade history on MtGox to maintain that stance. Yet that same trade history shows that since mid April, pretty much since the price spiked above $2, that MtGox has been experience a 30d volume consistently within 900,000 to 1 Million BTC, and now the price is on its way beyond $15. The 30d expected inflation through mining is anywhere between 200,000 and 300,000 BTC. This means that on a month and half span, about 1.5 millions "old" BTCs have changed hands (without accounting for the freshly mined coins in that period), which is over 1/4th of the total "old" BTC supply. According to your hoarding theory, this is impossible. Now I suggest you reflect on your stance.