> I wish more people (especially judges) would recognize this
Do you want a few large corporations to have to have absolute and total control of all AI? Because that's how you get that-- under that reasoning google/etc. will just stick requirements in their terms of service that they can train on your data and they'll be the only parties that can effectively make useful models.
Copyright isn't some natural law, were it all your works would be preempted by their presence deep inside pi. Instead it's a pragmatic compromise intended to give creators a time limited monopoly for reproduction of their work to encourage more creation. In the US it has never covered highly transformative uses-- in fact it shouldn't even matter if embedded in the AI were a literal encoding of the whole work, though that generally isn't the case. All our creations are fundamentally derivative, and fortunately the judiciary does seem to have a better handle on what copyright is than a lot of public.
If anything the rise of generative AI tools is a greater sign that the copyright tradeoff should shift towards more permissive: We don't need as much restriction on people's actual natural rights as we used to in order to get valuable and important stuff created as it's never been less expensive, less risky, or easier to monetize through non-restrictive means than it is today.
We don't get to choose to live in a world with these tools or not-- the genie is out of the bottle. But we probably do get a lot of choice about their openness and everyone's level of access to create and use these tools. Lets not choose poorly.