I'm not sure about the spiral, but the deflation aspect is definitely part of the plan.
Those most in love with BTC seem basically to just want to sit on something and get richer, because anything else is the government/other people/moochers stealing their money through inflation.
It depends on who you are listening to. There are certainly enthusiasts chanting BTC 10,000 (or more).
That's at least close to deserving the label spiral (the devaluing of the dollar over history has been something like a factor of 30 (depending on your dates), a factor of 100 is pretty impressive compared to that).
Those most in love with BTC seem basically to just want to sit on something and get richer, because anything else is the government/other people/moochers stealing their money through inflation.