While I agree that stable deflation (1% year) could be done without heavy drawbacks, then it's still not as efficient as with stable inflation. (with bitcoin there is no stability with deflation either). In the modern world, the major powers are in a constant economic battle with each other. If deflation would be more efficient, then you could be sure that they would adopt it just to have an edge over their competition.
I agree that deflation would be less "efficient" for the "major powers" who presently have first access to the newly printed money and that this is why we haven't adopted it.
Without trust, bitcoin will just die. Trust is the main thing that makes people put their wealth into bitcoin. Without trust there will be no wealth in bitcoin, and it will be just a fun innovative play money.
I agree that trust is important. A society that values honesty and integrity will be happier and more productive than a society that doesn't. We
want to trust people and have them trust us back, because business and relationships are more efficient after trust has been
earned.
I am only making the point that with bitcoin trust is optional.
Would you rather have a financial system where trust in third-parties and authorities is required (whether you feel they've earned it or not), or one where trust is optional and at your discretion?