Deflation produces falling nominal wages and even if real wages are increasing the "money illusion" of the working class generates strife. Re-education would not be that difficult, but as I said, we can have honest money with a growing MS as long as the distribution of the new money is equitable. For example, why not create a nickel, annually, for each dollar of money supply and give it to the owner, thereof; or give $200 to everyone ($60 billion) to grow the 1.2 trillion money supply by 5%; just take control over the distribution of money from the unproductive, banking sector that, despite all the special privileges heaped upon it, always gets in trouble and has to be bailed out by you and me.
Lack of divisibility is the achilles heel of the gold standard and its unweildly nature.
I am unaware of any limitation due to divisibility. Nor is it unweildy since a redeemable paper money and redeemable coins operate EXACTLY as unredeemable fiat money.
It is interesting that your solution is the same as that in a book I just finished called Triumph of the Bankers though the author (can't recall his name) seems to come from the opposite political spectrum as most FRs. And is totally against the gold standard.
Perhaps divisibility is not the proper word but trying to pay for small purchases would be very difficult and using gold dust would be totally impractical. In days when gold coins were used Mrs. James Polk mentioned in her letters the difficulty of carrying coins. She wanted paper money just for that reason lol. While ancedotal I believe it not an insignificant aspect of the gold standard.
Money all boils down to trust whatever the standard. It was this feature which Hamilton understood above all and his program essentially capitalized the word of the American people when its gov. stood by the debt issued. Trusting the word of the government induced large investments from Europe and made people from across the world invest here. Jefferson suggested the difficulties be solved by deflauting on the debt as had been done by several southern states with their debt taken on during the Revolutionary War.
Without this trust and that investment the U.S. would have had almost no money supply. Specie was drained to Europe by persistent trade deficits for at least only by continuous investment by England was the balance of payments kept from having disastrous impacts.