>That is interesting. Have there been rebuttals?

I don't know of any about the paper in question, however there are arguments against the idea of "tired-light" cosmology in general by Ned Wright:

http://www.astro.ucla.edu/~wright/tiredlit.htm

These aren't particularlly compelling (in my opinion, but who am I?), especially if you consider the arguments against the big bang. Here is a case against the big bang that addresses all of the above arguments described by Wright (this paper is by Tom Van Flandern, who is a qualified and knowledgable but by no means mainstream astronomer):

http://redshift.vif.com/JournalFiles/V09NO2PDF/V09N2tvf.PDF

We'll see if any compelling criticisms of Jensen's paper come in.