I don't think many would find that objectionable; I don't think people who object to the manner GitHub (and OpenAI, etc) has gone about this generally object to the existence of Copilot (or large language models or image generating AIs) itself, so I don't see think we'd be "losing a game". I personally would see it as a great result if these companies were respecting licensing in a rigorous way, or otherwise ensuring that this was more of an opt-in system (I'm not a supporter of intellectual property broadly).
It's not a lot to ask.
If it IS somehow an impossible technical challenge that this commercial entity can't manage, but they still want to persue the potential of this technology, they are free to pay other commercial software developers for licences that grant this usage explicitly just like any other commercial use/redistribution license.
If that pool of software is too small to be as useful, and too expensive to be practical, so what? Tough shit.
I see no reason to excuse how they are currently just not even bothering to do either option, or address the issue in any other way, and are simply outlaw right now.
Can it do this? Does it provide good branch coverage?