> Copyright gives a monopoly on distributing copies of that image to the rights holder.
Or derivative works.
> not the instructions that could lead to the image,
And yet torrent sites have been found to violate copyright, despite not hosting any of the copyrighted content.
> not the 1s and 0s that make up the image.
Now this is plainly false. I cannot start selling a Mickey Mouse JPEG stripped straight from Disney's site.
> You'll notice that CafePress still has t-shirts with the DeCSS code for sale: https://www.cafepress.com/+,954530397
1) This is covered by a trade secrets law, and not copyright.
2) It still being for sale doesn't mean it doesn't violate copyright; only that the copyright holder hasn't litigated to stop it. Put differently, getting away with something doesn't make it legal.
Look, I think Stable Diffusion is pretty neat. But all of this "it's just math"/"it's just data"/"it also creates non-copyrighted images" stuff doesn't cut it as far as the law is concerned. If your point is that being in possession of the model isn't violating copyright, sure.
I'm talking about distributing or otherwise providing a service that uses the model to generate images. If they figure out how to get it to stop generating training data, they'll be fine. But with existing approaches, that'll be nigh impossible.