You can't have a small stable currency (at least not without a central bank*).
Is there anything that could be done about this? I know what I'm about to say is impossible, but... if we could make a currency in which one denomination was worth some set amount of value, and no matter what the currency's market cap was, that denomination always had the exact same value or slightly more over time, it would imho be the ideal currency. I know that can't happen exaclty but is there any way an approximation of this could be possible during a rapidly changing market cap? Could Bitcoin's mining difficulty be used somehow to intelligently control the supply to reduce volatility?
Also, jdbtracker, I don't really understand what you're saying. Could you please re-explain your last post, because I can't understand what you're trying to say.