I think this volatility issue is one of the reason bitcoin may be still be secondary to fiat for a long period of time.. due to its volatility...
If a goods is priced at a certain amount of bitcoin, and then bitcoin price drops or trades higher, how then will you start changing the price of the goods every now and then. I know fiat changes too but the price difference in fiat cannot be compared to the massive leap that bitcoin does... Fiat has a centralised body to regulate the use of the currencies as so it's value changes almost every second but the prices of goods are made to remain stable for a long time before changing. But as bitcoin has not centralised authority, I don't think such can really be achieved... And yes even the divisible like Satoshi, mBit e.t.c. are not immune as they also follow the price of bitcoin.