The truth is that
While inscribed sats NFTs aren't removed from Bitcoin's supply, they can reduce effective liquidity if holders are reluctant to spend them. This is a market behavior, not a protocol issue.
The real concerns are network-related
More NFTs mean more small UTXOs, increasing node resource demands.
Data-heavy inscriptions can clog blocks, raise transaction fees, and crowd out regular usage.
Even with billions of sats inscribed, it's negligible compared to total supply. But if it ever reached hundreds of trillions, it could have economic implications.
It's not a supply crisis, it's a UX and scalability challenge.