No pun intended, but you are embarking upon a slippery slope.
Please leave Bitcoin the way it is- we don't need no stinkin' 10% annual inflation. To put it into perspective the US dollar currently inflates at around 1% annually.. 10% is just a ridiculous number.
You get it upside down.
Currently, Bitcoin money supply inflate +10% a year. Fixed money supply + X% dividends equal X% deflation a year. PoW is inflationnist, PoS is deflationnist.
Good point.
However, the 10% a year number will slowly decrease to 0% over time.
I see no mention in the proposal to allow for a slow decrease in the dividend percentage to mimic the future rate of minting.
Also, I see the bigger problem being people losing trust in Bitcoin (which I just edited into my previous post- see above).