This concept has specific technical meaning -
https://www.nolo.com/legal-encyclopedia/fair-use-what-transf...
It seems obvious to me that to call model weights "lossy compression" is not only incorrect from a technical (software dev) point of view, but also from this legal perspective.
The weights serve a different purpose than the original works from which they are derived, and wouldn't/couldn't POSSIBLY exist were it not for the original work of the authors of the models.
It's bad practice to go around espousing strong and condemnatory opinions about topics you don't have a full grasp of. In this case, it's both the technical details and the legal system.
It makes you look like a fool and costs you your credibility amongst peers in future encounters.