The reintroduction of coins from dead wallets would occur gradually through new mining cycles. Please note that the reintroduction of coin quantities would be asynchronous, as each wallet would have its relative clock.
Yet you're thinking of this over a 100 years period when it's obvious the bulk happened in the first years.
So just as we lived till now like this and we're going to do so over decades from now on till your "clock" starts ticking.
Just as an example, if we assume there are 1 million lost coins only in Satoshi's case then you have half of the next century's future supply just there.
The primary benefit of recycling would be reducing the need for future maintenance and hard forks aimed at lowering satoshis. Without recycling, these hard forks would become inevitable.
Future maintenance? Lowering satoshi?
You do realize that even if half of the coins would be actually lost, it would mean only an increase in the price of 100%, the last bull run made a 6x, there is no need for that and won't be anytime soon, for one satoshi to reach 1 cent you need first Bitcoin at 1 million and even in that case, you still have milisatoshi on LN.
When humans pass away, they cannot take their money with them.
I can still burn all my banknotes before I die, take that from me!
The way to determine if a wallet is unowned is through the expiration of a set period of zero active transactions.
No, it's not!
I have wallets I haven't touched in years and there is no way you're going to make me go through some centralized bullshit of proving I own this or force me to change my address every year to show the world my wallet is active.
Just deal with it, nobody likes your idea, it will never be implemented as it goes against the main principles in
BTC and that's it!