Earlier quoted context omitted.
Not an expert, but here's how I understand it. You know how input tokens are cheaper than output tokens? It's related to that. Say the model so far has "The capital of France". The small model generates "is Paris.", which let's say is 5 tokens. You feed the large model "The capital of France is Paris." to validate all 5 of those tokens in a single forward pass.
But what would happen if the small model's prediction was "is Rome."? Wouldn't that result in costlier inference if the small model is "wrong" more than it is correct. Also, if the small model would be sufficiently more "correct" than "wrong", wouldn't be more efficient to get rid of the large model at this point?
It is about improving quality while allowing for faster speed most of the time. The tradeoff is that you consume more memory from having two models loaded vs one of them exclusively.
If you just focus on one then it would make sense to reduce memory usage by just running the smaller model.