"The whole problem is that inflation is theft"

That is like saying that if you run a lemonade stand and someone else opens a lemonade stand next to you, they stole from you. A reduction in the value of what you own is not theft by any stretch of the word.

"It's historically been very popular as a means of taxing the public without them realizing that's what you're doing."

Ah, but inflation is not truly a tax, because it is driven by market forces and not by the law. Actual taxes reduce the rate of inflation by increasing demand for money.