> I think there is a real content dilemma here at work
It's not really a dilemma.
This is exactly what copyright serves to protect authors from. Perplexity copied the content, and in doing so directly competes with the original work, destroying it's market value and driving the original author out of business. Literally what copyright was invented to prevent.
It's the exact same situation as journalists going after Google & social media embeds of articles, which these sites propagandized as "prohibiting hyperlinking", but the issue has been the embedded (summary of the) content. Which people don't click through, and this is the entire point of those features for platforms like Facebook; Keeping users on facebook and not leaving.
This is why quite a few jurisdictions agreed with the journalists and moved to institute restrictions on such embedding.
By all practical considerations, perplexity is doing the exact same thing and trying to deflect with "we used an AI to paraphrase".
> The incentives of Google and website owners were more or less aligned.
The key difference here is that linking is and always has been fine. Google's Book search feature is fair use because the purpose is to send you to the book you searched for, not substitute the book.
Google's current AI summary feature is effectively the same as Perplexity. People don't click through to the original site, the original site doesn't get ad impressions or other revenue, and is driven out of business.
> What will happen if:
What will happen is what already is happening: Journalists are driven out of business, replaced by AI slop.
And then what? AI needs humans creating original content, especially for things like journalism and fact-finding. It'd be an eternal AI winter, all LLMs doomed to be stuck in 2025.
It's in every AI developer's best interest to halt the likes of Perplexity immediately before they irreparably damage the field of AI.