Most of the "laws" of economy in this form say often as a footnote "all else being equal", which remains to be seen. Otherwise you can justify any attempts at price decrease in any industry the same way.

Unless the number of users is already pretty much saturated. Which it probably is if we are honest by this point.

> I don’t think this is naive at all; it’s quite rational that demand increases as price decreases, which does seem inevitable.

But that's not what OC is saying, isn't it? Frontier models becoming better and cheaper at the same time are not a given.

Near-frontier models that have 99% of the capabilities of frontier models, at a tenth of the cost of frontier models, might ironically be what pops the bubble.