There's way too much theorizing/waxing-poetic online about how economics supposedly works that may or may not have a basis in reality and/or actual understanding of economics. I'm not really qualified to "call nonsense" on things, but I don't think you're in a position to just lay down the law either.

Anyway, if there's a fixed supply of Bitcoins, then yes, it seems that one unit's value would keep increasing. But wouldn't it then be possible to use increasingly small fractions of a Bitcoin as necessary?