But you're both completely missing the point that mining for coins will become exponentially more efficient over time, with new mining techniques and hardware.
When more energy-efficient mining equipment is created, people buy enough of the equipment to use the same amount of power that they used to have. For example, one might replace a 300 W GPU with a 300 W ASIC miner. The total amount of mining is determined by the exchange rate; since the exchange rate is expected to increase due to deflation, the amount of power spent on mining is also expected to increase dramatically.
I understand that. I said it would make more sense than the existing one. It would not be a perfect solution, and I would not have participated in that xCoin system either.