"So it's nice to think that maybe this could work to turn food waste back into edible protein, but is this actually more efficient than just composting the waste and using it to grow crops? Sure, maybe this is a good source of protein, but so are, say, beans, right?"
The reason that I am currently (as in, right now) building a soldier fly breeding box to mass produce these larvae is that the exit ramp of the box goes directly into the chicken run.
The conversation that spurred this was a thought experiment wherein a friend and I wondered how we might keep our flocks going in the absence of chicken feed available for purchase.
It's easy for him: He lives on many acres of flat, tillable land in Minnesota - if he wants his chicken flock to be self-sufficient he can just grow and harvest corn.
Our ranch is in Marin County, however, and while I have more than double the amount of land he does, very, very little of it is flat and almost zero is tillable. We're not going to take the precious 2-3 acres of flat land we have and grow corn in rows on it.
Hence the soldier fly larvae breeding operation.
As for efficiency, we are converting food scraps to larvae to chicken eggs. So the original input is "free" but there are then two animal conversions involved to produce the chicken egg since we have no intention of eating the larvae themselves.