Think about it, every decimal you allow further to settle, there are 10X more Bitcoin available. No difference from money printing other than it’s more efficient for the existing holders. Still would dilute the value. Make whatever L2s, L3s, etc you want to try and keep track of the fractions, the base layer should never do that. Satoshi knew this which is why he said the placement of the decimal point was academic.
Discussion
If I am please help me understand why. Kind of important to be clear on this mechanism I believe. 
I’m not sure how it dilutes the supply suppose you have 500 sats, you would still have 500 sats no matter how many units someone else divides their sat into, as long as nobody can create a new sat it wouldn’t be increasing the supply, there’d still be 21M bitcoin.
I respectfully think that you’re confusing between two different concepts but if I’m wrong I’d love to know how as well.
Do you understand number set theory or concepts such as Planck length?
It’s almost like clipping coins… https://youtu.be/EccJ3grLeyE?si=t6CCzTbf5XXUVZ0N
Also in this set (Bitcoin) there are limited valid numbers e.g. you can’t settle 1.5 sats on chain, you have to decide if it’s 1 or 2.
I think this is the slam dunk comment right here hoping it clicks for you!
I’m not sure, the 21 quadrillion set is the set of sats yes, and a 21 quadrillion * 10^3 set is a set of millisats? Why does it make it any special? The 21 million bitcoin set is what we should care about. I understand coin changing approximations bitcoin does, but why is that a limitation? It just looks like an approximation
