I am not concerned with an individual's loss of currecny, but the loss to the system as a whole and over time.
Here's your problem. You concern yourself with one side of an equation while dismissing the other side.
The reward of monetary deflation is neatly countered by the risk of coin loss. This is a truer stability, the stability of the average purchasing power of a position in Bitcoin.
"Bitcoin hoarder greedily increases holding as others lose keys. Loses key."