It is better for Bitcoin to have sticky prices. It is better for merchants to have fluctuating prices based on exchange rates in their preferred currency. Unfortunately, until enough merchants have sticky Bitcoin prices, merchants won't typically favor sticky Bitcoin prices. Tragedy of the commons.
I'd like to point out that I as a vendor do have a bitcoin only price for my goods, however if they were to fluxuate greatly i would need to adjust it unforunatly
I'm in the same boat. I held out as long as I could, but I finally had to adjust my prices to account for the weak exchange rate. If I could pay my mortgage with bitcoins, I don't think I'd ever exchange them for USD.