No blowing up a ship creates isk from the insurance payout. The industrialist who built the ship still has the isk that was paid for it. On the other hand the price of goods will increase as somebody needs to be paid for the increased gank risk in moving goods (assuming you popped a hauler).

On the effect of incursions on the economy, you realize that isk will come in somehow. If 20% of the PvE time in the game is being spent in incursions, then the fact that 20% of the PvE income comes from incursions is not a big deal (BTW your numbers are wrong, I believe that bounties number is only the bounties from missions not from ratting/plexing).

From what CCP is saying they want to tweak incursions a bit, but the PvE time invested to total payout is not badly out of whack (at least when LFG and transist times are taken into account).

Incursions are a bright shiny object that people have latched onto. CCP has flat out said that incursionsare not a major factor in the inflation problem..

Blowing up ships removes 0 ISK from the economy the ISK was already paid for & leaks back to the industialist that made it! The ISK is still circulating. The insurance paid actually adds ISK into the ecomony

Blowing up a player's ship and his goods reduces his net worth and may leave him broke. While his stuff did have value before it went poof, it was not isk.

Here it is Barney style:

3 players in the game, you, me and Joe the Miner. Each of us have 100 isk. 300isk in the game.

I buy 90 isk in materials from Joe, and build a ship. Now, you have 100, I have 10, and Joe has 190. 300 isk in the game.

You buy the ship from me for 100 isk. Now, you have 0, I have 110, & Joe has 190. 300 isk in the game.

Your ship gets blown up. you get 20 isk from insurance. I still have 110 & Joe still has 190. 320 isk in the game.

While you are broke, no isk was destroyed and the total amount of isk in the game has actually increased.