I don't think it should be ok to copy the literal works, the example of it emitting large chunks of articles from NYT is egregious, but it should be ok for it to learn and synthesize anything it can see. It should ideally, for producers and consumers of information, also be able to function as an index.

Some of the pushback is the desire to collect fees or social capital for works, which is understandable, but at the same time that inherently creates walled gardens of information and the ability to combine (synthesize), something which could be considered outdated compared to what these algorithms could offer.

One somewhat reasonable outcome could be that for profit offerings must develop ways to limit excerpts and acknowledge sources, the latter similarly to how Google search works. I think it would be a terrible outcome if knowledge and AI abilities were splintered off to different product groupings (eg NYT only available via Apple AI).