Absolutely agree. The richness of possible outcomes defy simplistic answers. Of all possible outcomes two downsides worry me: 1) too much Gov. debt (of all kinds) could hurt the price (subjective prob 20%) 2) perhaps inflation will not be as high as implied (subjective prob 30%)
I'd replace the above phrase "In general" with the phrase "In theory".
In practice the market has not been good at distinguishing between TIPS and ordinary treasury bonds. The NAV should catch up to theory but it may lag. Maybe that's a buying opportunity but have a thick skin and be patient. You will be paid to wait.