It should also deflate as the economy grows. Wrt the problems of deflation, it may or may not cause some, but it doesn't really matter because people who don't want to participate in Bitcoin don't have to. They can still choose to use inflationary stores of value.

Deflationary "problems" are largely strawmen. We've never had such deflationary money systems to know how it plays out long term.

In the end, people still need to eat and drink, and they're going to pay to meet those needs no matter how much it costs them.

Most of the complaints about deflation are from the Keynesian economists, who for them, it is a major problem. How are they going to pay back all that interest they keep accumulating if people aren't continuously spending?