I think supply don't matter here since it is all about the market cap or value of the total coins. POS even helps IMO since people will be buying more for their staking. What HMTL5 needs is to promote this to different communities and institutions so this coin will have its real use.
Without PoS integration, circulating supply is interesting, because HTML has never reached high prices with lots of circulating currencies, inflationary coins try in the long run to lose their intrinsic values and you know it, but with PoS, things may be different.
The new HTMLCOIN wallet has PoS. It keeps saying I reward in x number of hours, but it seems to come and go. At 1%, I'd expect a tiny payout, but I guess it is still a lottery?