All Jevon’s paradox says is that as a resource becomes cheaper total consumption of that resource increases. It applies equally well to the inputs of token production as it does to the tokens themselves. The former would describe the effect the sellers into AI companies see (energy, GPU chips, RAM etc - if they lower their prices they’ll have more overall consumption) while the latter describes what the AI companies see with their customers (if they lower token prices consumers will use more tokens overall).
Jevons paradox states it might increase. It is not an ironclad law and there are many many cases where increasing efficiency wrt. a certain resource really will decrease the total consumption of that resource. Yes tokens are an input themselves, but this thread is discussing hardware that is more efficient at generating tokens. To increase the efficiency by which tokens are converted into some other product would require innovation in some other area - harnesses, the models themselves, better skill from the prompters, etc.
