Bitcoin's volatility is a good thing, and that makes it attractive, but I don't understand why so many people want it to be stable? If bitcoin becomes as stable as gold, then I think more people will leave it and look for more volatile investments, let alone it will become as stable as currency. There won't be too many people loyal to bitcoin once it stabilizes.
Yes to everything you said, if Bitcoin stopped been volatility it'll lose what make it interesting and captivating to investors. High risk bring high rewards and that's what comes from the volatility of Bitcoin price and that's why it is interesting to many individuals, they have high expectations of profiting that's why the buy Bitcoin. Bitcoin can't stopped been volatile but the volatility can reduced in the future when Bitcoin gets more popular.
If Bitcoin volatility stops completely, the number of users on the blockchain will drop as only those that joined for the purpose of using Bitcoin as a currency for its unique characteristics will be left while other individual that joined for other price related purpose like trading will leave.