Inflation is not bad, it can be good or bad. Deflation is not good, it can be bad or good. Value is not price, price follows value.

Since you're talking about the network effect here, let's use that as an example. Something that is deflationary is probably going to have a decreasing network effect over time. Those in the beginning get a lot of a it, this in the middle get some of it, those at the end get little or none of it. Some sort of distribution mechanism (which deflation does not encourage) or inflation would be required to maintain the network effect moving forward, yes?