I see the current situation as a good opportunity for people to get near early adopter prices for Bitcoin.
... and thus the cycle begins again. This is exactly why I don't like the deflationary model.
The deflationary model has a very important social aspect in that it creates interest for Bitcoin before it becomes actually useful as a medium of exchange.
I like your point.
Anyhow as said elsewhere many times, we need to build a Bitcoin Economy if we want a stable Bitcoin.
The nice part is that a stable Bitcoin is not needed to start a Bitcoin Economy, even though it is very benefical to it. Sellers can immediately convert the Bitcoin, and stay safe of the exchange rate, while still contributing to the Bitcoin Economy by creating a flow of value.
What we really need is to stop is Bitcoin Robberies. Everytime a Hacker get his hands on a large ammount of Bitcoin, the value plummet along with trust and credibility.
A currency not backed up by an army is a very big challange...