Couple of things:
> There's more wrong than that. The creators of the protocol are of the shared mentality that any inflation is bad, thus bitcoins have a fixed supply.
Mentality is not really relevant. You could say that of any fixed supply instrument. Once the last gold nugget is mined gold is deflationary. Now, if you told me gold is a terrible basis for a currency....I would AGREE with you. However, that doesn't mean it is useless as an economic instrument. Not everything is liquid currency or needs to fill the niche it does.
Gold is a terrible basis for a currency that lubricates the economy; however, its a great instrument for hedging against inflation.
Bitcoin fits into an odd space where it tries to be gold and cash at the same time. Its an odd ecological niche, but I think, a real one, since it allows value to be transmitted electronically.
One of the values, beyond what we discuss is the decentralization. Now its not perfect, as we know, but, compared to what? Look at our current system where its clearly an old boys club who are bilking the whole economy for their own gain.
You can look at inflation of the money supply as a form of wealth redistribution, you devalue the currency by creating more value, and flow it into the economy. Its not a bad thing per se. Its economic lubricant, it gives people incentive to invest money rather than hoard it....its good.
However, the current redistribution is patently unfair. Just look at the grab for TARP money where wall street execs were, quite literally, putting their wives in charge of companies just to receive the new money in the form of no-recourse loans.
Its wealth redistribution from everyone....right into the pockets of the already wealthy! Is it any wonder there are enough people fed up with it to create little niche markets like bitcoin?