Just because you couldn't understand how Moore's Law regulates inflation in the long term does not mean it doesn't work.
PPC has already demonstrated that it works very well, via an accelerated schedule due to the introduction of ASIC mining. PPC currently has the lowest inflation rate among all top altcoins. How about a collapse in demand? Let's say PPC price drops to 0.0001, 6% of its current price, how about difficulty then, still gonna be at 60K, inflation rate is only going to double at most, still way less inflation than quite a few altcoins such as FTC. That is exactly as designed, Moore's Law would dominate the scarcity model in the long term, demand only plays secondary role in short term.
The scarcity model is by design and of course intentional. It strengthens scarcity in the first four years than bitcoin's design, meanwhile also gives early adopters/investors reasonable advantage. I am pro free market and do not have a jealousy problem toward them, rather I recognize their important roles to help with the growth of the currency.
What you link is propaganda from CMC people. They copied PPC without giving credit yet spread this propaganda about how PPC and XPM (among several other top altcoins) are unfair. Yet they conveniently forget to mention in their malicious propaganda that both PPC and XPM had about 10 days of pre-release notice so the mining public had fair opportunities to participate. Also, both PPC and XPM have no cap, meaning in the long term the seemingly high initial mint quantity would be constantly diluted unlike other coins with cap scarcity model.
Again, I must say that your whole theory relies on steady demand for Bitcoin, PPC and XPM alike.
You have not taken into account disruptive technologies, such as Decrits (which is for pure example only - unlikely to ever realize) or eMunie (still in beta, but close to initial launch) that will take over the whole Bitcoin niche (which to date only has about 200K users, max).
In two years from now, Bitcoin has a very high chance of becoming "history" when it comes to functioning as a currency, and may only be used as a store of value by then (a commodity), because new things like eMunie will be able to process transactions in seconds, not minutes - so while not designed to be a "commodity" - it's function is very clear - to be used as a currency and it suppose to do that better than what Visa has already accomplished.
I'm sure Satoshi was very clear about where he wanted to see Bitcoin going over the long term - to function as a commodity and a stepping stone towards decentralized currency revolution - and that is what eMunie is NOT designed to replace (but who knows, maybe someone else will create something better than Bitcoin in the future to be used as Digital Gold!).
That's why I see no future for Primecoin, nor PPCoin, because you don't seem to have planned out a clear direction of where you want to see your coin heading in the long term.
Both Primecoin and PPcoin are lost in between being a "currency" and a "commodity" - but do a horrible job of both...