Should make sure to establish this up front: People know this, it's not controversial. It's not only known to a few. It's how it works.
Also note that this example purposefully minimizes training data down to an absurdity, so it is possible to correlate 1:1 that the next letter's probabilities to the input. The key of the rest of this comment,, and the discussions you reference, is the observation that's vastly harder once the training data is measured in terabytes, to the point the question becomes interesting.
The argument of which you're speaking, the people you think are speaking literally are speaking figuratively: they know it reproduces _some_ training data, i.e. 2+2=4 was surely in the training data. Or c.f. NY Times v. OpenAI, where they were able to get it to complete an article given the first ~5 paragraphs of the article.
The unsettled question, in US legal parlance, is if LLMs are sufficiently transformative of the training data that it becomes fair use.
Eschewing US legal parlance: where, exactly, on the spectrum of "completely original" to "photocopier with perfect recall" LLMs fall, given we know it isn't at either of those extremes? What responsibility does that give someone operating an LLM commercially to the entities who originated the training data?