While the argument was posted on LessWrong previously, now it has the neat form of a paper on arXive by Anders Sandberg, Eric Drexler and Toby Ord
TL;DR version: the use of Drake-like equations, with point estimates of highly uncertain parameters, is wrong. Extant scientific knowledge corresponds to uncertainties that span multiple orders of magnitude.
When the statistics is done correctly to represent realistic distributions of uncertainty in the literature, "people who take the views of most members of the research community seriously should ascribe something like a one in three chance to being alone in the galaxy and so should not be greatly surprised by our lack of evidence of other civilizations. The probability of N <10^−10 (such that we are alone in the observable universe) is 10%. "
From the conclusions, when the priors are updated
When we update this prior in light of the Fermi observation, we find a substantial probability that we are alone in our galaxy, and perhaps even in our observable universe (53%–99.6% and 39%–85% respectively). ’
Not quite. Expected value is linear but doesn't commute with multiplication. Since the Drake equation is pure multiplication then you could use point estimates of the means in log space and sum those to get the mean in log space of the result, but even then you'd *only* have the mean of the result, whereas what would really be a "paradox" is if P(N=1|N≠0) turned out to be tiny.