Let's make sure we're on the same page here:
If you disagree with me, please describe the problem you think I'm talking about.
I'm not asking for a detailed analysis, just a few sentences describing it.
You are possibly talking about the situation when lost wallet is found when BTC price become many times higher.
Pretty much. Or, to be more specific, a situation where the entire economy (pretty unlikely, but the problem would still be there with less than 100% adoption) is running on some relatively small part of the "original" 21m BTC (let's say 100,000) and somebody finds an old wallet containing 50,000 BTC from the olden days.
This would not only cause a huge mess if it happened, the very fact that it
might happen could prevent Bitcoin from catching on.
You haven't really addressed that specific problem.
And remember that it's a punishment, not a vacation.
Decent healthcare and some contact with the outside world would hardly make it a vacation.