It does not matter how many coins there are... the value is in the % increase with use that matters... Doesnt it?
Coin supply doesn't matter to consumers as much as it matters to investors. Consumers just want a reliable product that is useful to them, they aren't thinking about how much money they can make from it. Investors don't care as much about using the product as they do about making a profit from it.
The Law of Supply and Demand tells us that the greater the demand, the greater the value. If there are too many coins in circulation, the demand won't be great, and thus the value of the coin won't be high. In other words, while it may be useful, it may not be seen as valuable. Think of it as comparing pennies to dollars or as silver to gold.