Also, if you were to buy exactly the same products in 2006 and 1981, they would cost you $1.00 and $0.42 respectively.
This is a little deceptive. I would make the case that for many products and/or services, the real cost is actually lower -- and in some cases MUCH lower -- in 2006 than in 1981.
IMO, what you're talking about is true, but it's more a function of productivity than deflation.