What is the point if only 21 million can be generated? Are they infinitely divisible or something? Thats less than one bitcoin per person in California alone.
If the desire for BTC goes up, so will its value. There's no problem here.
In an economy with a finite amount of money, even potentially, the exchange is not rational given that the money's value grows over time.
That's why the focus is on generating BitCoins.
Why not? Our current currencies (which are a lot more useful than BTC) are not backed by any finite commondity like gold.