That's like saying the Fed wouldn't see a need to print more US dollars if we could have half-pennies, millionths of pennies, etc.
No, for several reasons. First, part of the premise of bitcoins is to have a known rate of inflation that is eventually limited, whereas the Fed has no systemic rules against inflation in general.
Second, bitcoins are entirely digital. The ease of a transaction for 5 bitcoins is almost identical to that for .00351 bitcoins. Making fractional coins on the other hand would make the system extremely more complicated to use.
You don't NEED to make more bitcoins because as their scarcity relative to how many people want them goes up, you can simply and EASILY trade in fractional bitcoins to make up for it, which you can't do if the dollar supply was limited.
Though not yet an "official" project, Google has released a Bitcoin client. As you may remember, there were concerns here about what the government/legal reaction to Bitcoin [1] will be, and the significance of certain groups lending their support to it. EFF and SIAI accept Bitcoin donations, which helps, and this action by Google is another big step.
Previous articles: SIAI accepting Bitcoin donations, Discussion on making money with Bitcoin (Clippy warning on the latter)
[1] In short, it's an anonymous P2P crypto-currency with no transaction fees, in which new units are generated by spending computer cycles computing hashes until you find one with specific properties.