Consumer electonics show that the deflation-stops-the-economy theory is a myth. Every iPhone is hugely overpriced at launch, yet people will queue up for a week to buy the shiny new one. Some people wait, but not all of them. Smart phones, computers, televisions - all decrease in price over time as they are superceded by bigger, better, faster.
Moore's Law positively demands that processing power both increases in power, and yet gets cheaper at the same time. Yet people still buy new phones, TVs, computers etc, rather than wait for the newer, bigger, better version for the same money. People obviously haven't read the right economics textbooks.
Deflation is the natural state for all manufactured goods: initially expensive, once R&D, tooling etc has been paid for economies of scale and competition bring the price down. What deflation does do, is blow up banks and government debt. Therefore, we get endless inflation, but are told it is good for us. It is actually intentional theft, done on purpose, to steal about half of all wealth over a generation. It's the boiling frog syndome.
