I agree that history is about to repeat itself for exactly the reason you state - that the generals are fighting the last (inflationary) war. I am more concerned with deflation than with inflation as very high real interest rates will strangle the economy. When inflation is negative, real interest rates can get very high very quickly, even if nominal rates are low. As you say, a deflationary depression should lower oil prices (and the price of everything in relation to cash) temporarily through involuntary demand destruction (rather than voluntary conservation). This may obsucure the peaking process and lead to a bumpy plateau, perhaps with very volatile prices, for a while.

Where I would disagree with you is with the assertion that cutting interest rates in desperation would actually stimulate the economy. Even with nominal rates near zero, real rates could still be punishingly high in a negative inflation (deflationary) environment. During the implosion of the credit bubble, lowering interest rates should be the equivalent of pushing on a piece of string. The Japanese tried to stimulate their economy for years, cutting their rates to almost zero, but couldn't get nervous citizens to spend. I would expect the US government (and others) to try the same thing with the same result.

Once the deflationary impulse is spent, I would then expect hyperinflation in both Japan and the US. The generals would still be fighting the war on deflation as inflationary pressures loom. America should watch Japan as they are further along the path to hyperinflation. The US should catch up eventually though as the American crash should proceed more rapidly.

As the world's former largest creditor, Japan was able to stave off the day of reckoning for years by burning through their resources building four lane highways from nowhere to nowhere etc. The US is going into a crash as the world's largest debtor already. America's deflationary crash may be the trigger to push Japan into hyperinflation. (Printing yen has already begun - see The Dollar Crisis by Richard Duncan.) I would guess that America's own hyperinflation would begin several years later. It should indeed be a mess.