A couple of things.
The current rate of inflation at 100% only lasts for the first year. We have about 9 Months to go then it drops to 10%. I believe it will remain that for perpetuity.
You could look at that as a continuation of the ninja-mining but allowing the minnows on board. Or you could look at it as a stock-split.
The market does seem to be devaluing the currency but who knows what's behind that for sure? Could be the market doing price discovery. Could be misunderstandings of future inflation rates. Heck knows the white paper isn't an easy read. Could be any number of things.
The other point is that the 100% growth in the number of Steem happens only in the Steem power which can only be powered down at <1% of your Vests per day.
Even if everybody were powering down constantly (which they aren't) the 100% inflated Steempower would be amortized over a greater than two year span. Meaning we would have 50% inflation (plus the 10% inflation of Steem) for at most two years. That's hardly going to send the price to zero.
But it's more than likely sending the price down.
Trying my best and it's late. Find an error? Let me know.
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All sounds good to me. Sleep sound ;)