Part of what convinced me that the idea was doomed from the start when I presented it the first time was the observation that people actually DO care about the "There Will Never Be More Than 21 Million Bitcoins" part as a core attraction. Inflatacoin lacks that appealing attribute, even if the truth of the matter is "You Will Be Long Dead Before There Is Ever More Than 21 Million Inflatacoins".
I think the number of Freicoins will be fixed at 21 million, just like Bitcoin. The difference will be, that inactive accounts will have 4.4% of their balance stripped off each year, and redistributed back to the miners.
At least, thats how I understood the OP.