This artist doesn't complain about work similar to their own being generated, and their artwork is very clearly not clothing.
So? Why does the author's opinion even enter into the equation? Authors cannot claim ownership beyond the bounds of copyright. If what AI is doing qualifies as fair use, the artist cannot do anything about it. I'm sure that lots of artists would not want anyone to lampoon or criticize their work. They cannot stop such things. I'm sure lots of artists would never want anyone to ever create anything in any way similar to their work. They cannot do that either.
Replace "use" with "copy". No one may copy the work to make a profit. Fair Use has long been an exemption to copyright, with Learning an example of Fair Use. But no one expected AIs to learn so quickly. I don't think it is clear either way, and will end up in SCOTUS.
Free and redistribute the material
Agreed: in the end, courts will make the decision.
The proper construction is that copyright is an exemption from the freedom of speech. Fair use is a partial description of freedom of speech, a description to narrow the limits of copyright rather than to broaden the already limitless bounds of freedom of speech.
The default for expression is that it is allowed except if copyrighted, as opposed to copyrighted except when covered by fair use.