What happens with debris or micro debris? They say it's stronger than steel, but steel doesn't really on the entire piece being critical to the structure, so holes won't necessarily lead to catastrophic failures. Or what am I missing?

You’d probably want an auto sealing system. You can coat the inside of your bike tire in a goop that hardens if a puncture happens. The positive pressure squishes the liquid out the hole and it hardens. That will probably be standard equipment in space soon.

"Inflatable" doesn't have to mean "tightly stretched rubber like a balloon" or "lowest bidder plastic heat-bonded together with a picture of a flamingo in it". You can build strong materials that will still inflate, especially with .5-1 atmospheres of pressure, no problem.

I'm pretty sure everyone is using a standard pressure and composition on their spacecrafts and stations now. If you want to dock with existing craft and not have managing atmospheres be a big problem, you want to stick to the standard.