Of course then a company in China (or other countries that are rich enough but don't care the U.S. lawsuits enough) will make a better SD 3.0.
If the neural network tech itself is good enough, this shouldn't be too much of a problem. Finding these images and verifying their copyright status is going to take more work.
Most likely, AI giants will buy digital art websites like DeviantArt or Flickr and use the images already collected after changing around the terms a bunch of times.
To be honest, I already feel quite strange about folks profiting off of SD results.
A lot of that existing content is copyrighted, and demonstrably present in the resulting product; so these companies have an uphill battle _not_ to be stopped by the courts.
These lawsuits will go exactly like in the war against piracy, impossible to win. Cut one head off, ten more appear.
I'm not arguing that generative art will cease to exist, I'm just arguing that the path to legal revenue will involve paying copyright holders; and the real gold in this industry is in licensing training datasets to businesses that just want 'AI Magic' in their product marketing.