The models that are trained on these inputs absolutely do not contain all of the text that they're trained on. Even with non-quantized models you're looking at somewhere in the realm of 3% of the training data being present in the final model.

Further, these models are not used to reproduce copyrighted works... they would be one of the least efficient ways to do so.

I also don't think there's a particularly strong argument that training on a book or image decreases the market for the original book or image. To take an example, zero folks that want to read Game of Thrones are asking ChatGPT to generate Game of Thrones for them instead of buying the book.

I think what's really happened here is that artists' work has utility outside of the originally intended audience, that utility largely comes from statistically analyzing the writing, and the debate is about whether or not the utility of those statistics requires additional compensation for the artists. That question seems to hinge on the intricacies of copyright law, but as I've stated before, I think the fair use argument is quite strong.