You seem to be very confident that you know exactly how the law is going to be interpreted in this case. If I were you I'd moderate that confidence a bit to cover the possibility that you are not in fact the top legal scholar you seem to think you are.

I could see this go either way. There's the argument you put forth, and then there's the argument that a text to image model is a transformative work. You can use copyrighted works and make money off your product and still have a transformative work. The Google books case is, of course, good reading on the subject.

My main point is that it is not at all clear which way the law will go on this.