I like your point about adoption. It makes sense that a deflationary currency would attract more people due to its speculative nature. Without this aspect of bitcoin, it would still probably be trading for pennies and languishing in relative obscurity. Any digital currency designed with an inflationary system will probably fail to attract a critical mass of users, because outside of anonymity, which is only important for a small minority, there is no significant upside to owning the currency.

Where I don't agree with you is that the divisible nature of bitcoin somehow makes it viable (most currencies are divisible by the way, 100 cents = $1). The fact is deflation suppress spending (and hence economic activity) because the currency will be worth significantly more in the future than it is now, and therefore, I would prefer to hold onto it rather than spend it. Divisibility does not change this.

Where I am still up in the air, is whether or not a digital currency needs to be inflationary. Gold has some industrial uses, but it's value is largely due to tradition and speculation. It has long been used as a common store of value and is bought by traders as a hedge against fluctuations in the global economy. Bitcoin could become the 'Gold of the internet'. A new way to hedge against the global economy, but other than that, not something that really affects everyday life, except maybe at the fringes (when was the last time you bought something with gold).