After rereading the article, I now understand that you were referring to this quote in the article : "The circulation number is not enough".
You are right, the fact that it's divisible render this point moot. I thought you were saying that dividing coins somehow decreased scarcity (Yes, I've seen many people argue that, believe it or not).
Original comment below :
I find it really mind boggling that some people don't understand that dividing a pizza into 100M pieces does not give you more pizza.
I'm not saying the price can't increase, I'm saying that dividing coins does not reduce scarcity.
Edit: Updated my original comment, turns out I'm the one who misunderstood your point. We actually agree.