I never denied there were real transactions either, but I said there would be more of those if the price was stable. People won't have to worry about spending coins because they're afraid the price would spike soon after they spend them, nor would they worry about a price drop after earning a coin so they won't have to rush and liquidate them. What exactly is your problem with a stable price system?
I actually think that it will stabilize when the number of people using it stabilizes for a long time. Perhaps that will happen after some bubble bursts.