having no hard cap and billions of coins guarantees a low price forever.
As if a hard cap is helping Litecoin that much

Litecoin has a massive inflation now in double digits and will continue to for the next few years, Dogecoin's massive inflation is reduced each ~2 months with halvenings and by the end of 2014 will become manageable (less than Bitcoin's and Litecoin's for the next 5 years) to guarantee greater valuations of Dogecoin if the developers and community don't stop like Litecoin's devs.
A switch to PoS or some PoW+PoS combo is great, because it takes away worries of the 51% attack. After that Dogecoin has a chance to become a currency of choice for micro and small transactions.