The point is that we are talking about the input signal to the cochlear amplifier. There has to be a passive signal (the effective stimulus) on which the positive feedback process can work. The BM displacement that is measured in a normal cochlea is _after_ amplification has occurred (remember that AJ's original figure of 1 pm was derived from Ruggero et al. 1997 by looking at their post-mortem data).
So the fundamental question is, how can a normal cochlea detect 1 pm and amplify it a thousand-fold (60 dB) so that we see a 1 nm displacement? I agree with Martin that it can't, and there has to be some other, larger, effective stimulus.