It's strange to compare a deflationary environment in a country operating with a single currency, which is pretty clearly bad, to deflation in the value of a currency that coexists with other currencies within an economy.
The idea that Bitcoin will become "too valuable" doesn't take into account the fact that people will cave and start buying houses and yachts and so on by converting to USD in order to live the lifestyles they can now afford. In a world where bitcoin is the only currency and all services are denominated in bitcoin value, deflation might cause problems, but that will never happen and was never the point of bitcoin in the first place.
I hope we have a lively bitcoin economy with deep connections to the non-bitcoin economy the same way I hope that America has a lively economy with deep connections to other economies. I want more bitcoin-denominated services as much as anyone, but the intercourse with "the outside" is key for keeping bitcoin healthy in my opinion.