I agree with the points that you did make, but there are significant tail risks that you didn't mention.

Historically, the usual failure mode for empires that consistently inflate their currency is that those entrusted with the empire's military might become loyal to those who can pay them with hard assets that don't lose value as soon as they receive them, whether it be foreign currency, Bitcoin, land, or private data that they don't want to become public. Basically, you get warlords and mercenaries, and society reverts to a quasi-feudal system. The risk isn't war in the sense of Great-Power conflicts, it's war in the sense of national disintegration, like what happened in Russia, Venezuela, Yugoslavia, Zaire, Somalia, and Rome.