If I lose my wallet and private key does that effectively remove bitcoin from the market forever?
If you permanently loose your keys, the short answer is essentially yes. Your loss, a deflation, will cause the value Bitcoin being held by others to go up proportionately. 

With a 100% efficient quantum computer (not likely at all), the amount of energy required to brute force compute the private keys will cost ~$100M each in electricity (assuming 5 cents per KiloWatt-Hour) if the public keys associated with the private keys are published on the blockchain.