In a bubble things go up 100X and crash 99% for no reason other than humans are dumb and emotional

Sure that happens, and in that case the maximum added inflation is 10%. But in practice it is much less than that because: 1) not all HBD will get converted, and 2) even in the bubble-crash scenario, there is still some benefit from the deflation on the pump side.

Will this happen a few times? Probably, in fact you could even say it is a certainty. But there still has to be a long term price increase due to people seeing value in the blockchain or you're just trading a speculative asset like the rest of the gamblers. If that's the game you want to play, fine. If not, then you can't disregard the long term benefit of reduced inflation from the long term price trend.

You might prefer not to have the leverage, that's a fair preference, but you can't dismiss the benefits of it in calculating the overall cost.

I still maintain that 10% (or any reasonable percent) maximum possible (in practice significantly lower) added inflation from a large boom bust cycle is not a "blow up" risk at all. It's, at worst, a bit of drag on the way to longer term success.