1. I have bought a few stuff with bitcoins. Look
here or
here.
2. No one knows if the price is going up or down...
3. The network controls difficulty and the amount of coins generated. There will be 21 million bitcoins in total. The current reward is 50 bitcoins per block. Next year it will halve to 25 bitcoins per block and
so on. Regarding inflation, the price is dictated by the market. Prices will only come down if people sell the coins.