Seriously, anyone who thinks deflation is good is either short sighted or stupid. Fundamentally, if my money is worth more tomorrow, I won't spend it today, and you halt the entire economic system like that.
I like peercoin, which is a bitcoin that can maintain wallets without the full block chain, do less expensive proof of work problems when the network is computationally competitive enough, and has a fixed inflation rate of 1%.
The only improvement I'd like to see is a currency that uses a coin generation algorithm based off recent monetary velocity, so that if exchange slows the inflation rate increases to stimulate more exchange, and if a lot of money is changing hands the inflation rate is slowed, with a targeted turnover ratio of the entire economy that is whatever is most economically healthy, it would require research.
