To the extent BTC can be compared to gold, then perhaps it is best not considered a currency at all, deflationary or otherwise, but rather a basis for other currencies. That suggests that new currencies will emerge that are pegged to BTC, just as the US dollar was formerly based on gold.
All of your objections are valid, but they also apply to gold. Gold mining is mostly an occupation for large organizations with access to large amounts of machinery and energy. It is hard to cash out without taking a financial beating from back-alley dealers with "I Buy Gold!" signs. It can be forfeited to the government, and in fact has been declared illegal for individuals to own in the past. The origins and history of a given sample are traceable to some extent through modern spectroscopy and radiometric techniques. Gold, too, lends itself to criminal activity in many respects. It would be time-consuming for individual merchants to confirm transactions in gold, given thousands of years' worth of counterfeiting tricks. And it has massive scalability problems due to, well, its mass.
Yet few people deny that gold has value as either a basis for a given currency or as a hedge against one.