I also see this psychological barrier people have. Unfortunately, a lot of people don't actually understand fractional or decimal values, sad but true. When they see it, all they think is that it's a tiny amount and that's about it. However, at the current bitcoin valuation of ~1225 it should not be that difficult to understand what 1mBTC is worth. As the value keeps rising, bitcoins will more likely be valued as mBTC uBTC and one day maybe even Satoshi, and bitcoins can be enumerated less than a Satoshi, so the true distributional supply could be infinite and is not limited to 21M. All it takes is proper communication and marketing so that psychological barrier for people is broken.

Coins are still being mined, although the block reward keeps decreasing, miners also get transaction fees, so the more  transactions with fees there are per block, the more bitcoins have mined/changed hands. At some point, the miners will only be mining for tx fess, however, by the time that comes, they could well be earning more mining tx fess than the block rewards today.