Eventually at most only 21 million coins for 6.8 billion people in the world if it really gets huge.

But don't worry, there are another 6 decimal places that aren't shown, for a total of 8 decimal places internally. It shows 1.00 but internally it's 1.00000000. If there's massive deflation in the future, the software could show more decimal places.

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Agreed...but didn't Satoshi himself mine over a million before he left? As I understand this, those coins have not moved.

So unless Satoshi has programmed another surprise in the future, these coins are in a wallet, and not circulating.

Wouldn't this, plus all the lost private keys, reduce the circulation available for non-hodlers?

Yes