If I actually had free no-holds-barred heated water, I'd run a pipe down to the local laundry and sell it at a profit. That is the rational response - the reason you don't see people doing that is because nobody offers free heated water at scale.
Your mistake here is thinking that resources have an implicit purpose (hot water => warm showers). If that were true, Jeveron's paradox would not hold. The paradox holds because once something becomes more abundant, it can be used for totally new activities.
First example: if lots of people had that free hot water, there would pretty soon be companies offering them money for the use of it. A bitcoin miner hooked up to a stirling engine under the hot tap, perhaps?
Second example: shoe materials are probably fungible for other petrochemical products. Reduced-wear elastomers might result in fewer pairs of shoes wearing out but higher demand in other markets.
For example, a reversal: nobody would drive their cars at all if the fuel prices would be the same for 5 seconds of driving as it is for a distance of 1000 miles now.