That is not remotely a shared understanding, is wrong, and has nothing to do with making it possible for a lot of content to be openly distributed on the web. Content is distributed quite widely without concern for copyright.
> A number of AI systems combine (1) automated large-scale consumption of Web content, and (2) production at scale of content, in ways that do not recognize or otherwise compensate content it was trained from.
> While some of these tensions are not new (as discussed below), systems based on Machine Learning are poised to upend the existing balance. Unless a new sustainable equilibrium is found, this exposes the Web to the following undesirable outcomes:
> Significantly less open distributed content (which would likely have a disproportionate impact on the less wealthy part of the population)
That's even more ridiculous. The wealthy stand the most to gain from restricting the flow of information to channels which collect rent on behalf of their capital. It's the "less wealthy" who routinely find ways to distribute content outside of rent-seeking channels. It's the "less wealthy" who benefit the most from the commoditization of creative content via generative algorithms.
Quite frankly, I expected better from W3C.