This is not a post intended to point out any flaws in Bitcoin nor is it intended to suggest any changes.  I am simply looking for input from the Bitcoin community on my ideas.

From what I understand the problem with many fiat currencies is the incentive for the printing authority to increase the number of notes in circulation.  The reason this incentive exists is because of the time-lag between the increase in the money supply and the corresponding increase in prices.  Additionally, when the printing authority and government are one in the same, there is an additional, political cause of this incentive in that it allows politicians to spend on programs that will keep them in office while not immediately and plainly passing the costs onto their constituents.

In the longer term, the inflated money supply causes price inflation.  However, despite this, Bitcoin is currently in an inflationary period (until all 21 million are mined) and there is actually price deflation overall (ignoring the ups and downs due to the current volatility).  I believe that this is because in the much longer run there is a known, finite amount of Bitcoin.  Basically, despite the current fluctuating quantity of Bitcoin, there is long term stability, which, from my understanding, is the ideal state for any currency.

While I believe this is a good thing, since I view inflation (and the following price inflation) as tantamount to theft, the downside is the risk of coin loss.  I am not concerned with an individual's loss of currency, but the loss to the system as a whole and over time.  This problem is made more dangerous, in the Bitcoin case, by the current concentration of coins in the hands of the few.  I will pause here to indicate that I believe any allocation of wealth to be just and take no issue with someone or group of someones amassing any degree of wealth, so long as they do so by honest means.

All of this being said, I wonder if a currency where the supply is constantly increasing, to replace lost or inaccessible currency, but at a defined and unchanging rate.  While this still would likely amount to overall inflation, the inflation would be totally predictable and controlled (the purported holy grail of modern central banking), thereby allowing people to predict and account for any price inflation that might follow.

To sum up, my basic argument is this

1) The best possible state for a currency is one of stability
2) Units of currency are lost or made inaccessible

Therefore;

Controlled and steady inflation is better than a static money supply.

Any further thoughts?