I see no problem with this since those who collect the new blocks/BTC's are distributed at random with probability modulated by computing power.
If somebody skews this probability to their favor at minimum they have created a large computer (cluster), which has value by itself
and gave work/money to lots of people, and at best they have advanced the state of computing in general.
This type of system of money creation is completely different from the way the banks do it today where the created money eventually
ends up in the pockets of a small rich minority at the expense of all the others.
My argument why there should be a small inflation is not so much the deflation spiral, which I don't think would be a problem,
but as more to do with human psychology.
As we progress through life we want to "climb upward". We except reward for our productivity.
We gaining knowledge, skills etc and hence we expect our salaries to rise.
This simple "feedback" makes us happy. Our real purchasing power may have gone down over time even though we got several big fat raises, but most people
don't see it that way. It's a question of feeling more than intellectual understanding.
As the value of bitcoin rises, you could argue your productivity is helping make everything cheaper. So in fact your salary stays the same, but you reap the reward
when prices go down. I would say I'm a reasonable smart person, but even I don't get the same emotional satisfaction from seeing prices fall, as I do from my salary rising.
Intellectually I understand that my hard work (or not so hard?..) has contributed to increase productivity and hence purchasing power, but the emotional connection
gets lost on most people. Even worse, I may have to take a pay cut because the value of the currency climbs too fast by productivity in other areas. (or I'm a lazy tard
One could say that in deflation, the awards are distributed evenly across the entire population but this is too abstract for the naked ape. ( communism doesn't work in practice )
A modest inflation of say 1% ? would preserve the award mechanism to promote productivity for individuals/small groups, without "punishing" those who aren't doing so well.
This would also alleviate other issues like lost coins and "super nodes" would not have to rely on fees alone for their finance in the future.
All this is based on bitcoin becoming an established currency with enough nodes to dwarf any single entity when it comes to computing power.
Right now it's in it's infancy and there will be growing pains. I'm happy to spend some money I might never see again to help it become reality.
What we need now is more businesses/people accepting and using bitcoins on a daily basis. Owning bitcoins doesn't make it a viable currency by itself.