$1.25 is the bottom as long as difficulty is over 1.5 mil. If difficulty nosedives a la namecoin there is no bottom.

Nonsense. The difficulty is -indirectly- influenced by the BTC trading price, not vice versa. BTC price is not influenced by the number of miners or difficulty at all; the number of BTCs created is constant regardless.

The number of BTCs created is constant, but the distribution of those BTCs is not.

Difficulty/# of miners absolutely influences price. If BTC is worth $10 and and you have 10,000 miners receiving payouts, then the distributed average of USD payout to each person in BTC is 5 cents. If you have 100 miners, the distributed average of USD payout to each person in BTC is 5 DOLLARS. The 100 miners will sell their BTC faster than the 10,000 miners will sell theirs.

In other words, more miners = longer time it takes to accumulate enough BTC to reach a psychological selling point. This absolutely influences price.

Yes, I know that to a degree the price will influence the number of miners and hence difficulty as a result of electrical costs and what not, but that's kind of the point as well...it's not a one way street.