I guess it's a form of tracking and we don't like that
And yeah, you can see the watermarking code in the huggingface pipeline now. Its pretty simple, and theres really no reason to disable it.
If it's strictly a primitive watermark with absolutely nothing unique per mark, then it might be no big deal.
https://github.com/huggingface/diffusers/blob/2367c1b9fa3126...
I see no reason to disable it. Its fast, and its no more personal than basic metadata like image format and resolution... I can't think of any use case for disabling it other than passing AI generated images as authentic.