Thumbnails are not transformative, they are fair use. They would be copyright infringement, except that a court case ruled them as fair use:
https://en.wikipedia.org/wiki/Perfect_10,_Inc._v._Amazon.com... .
The fact that compression is incredibly lossy does not change the fact that it's copyright infringement.
I have a lossy compression algorithm with simply outputs '0' or '1' depending on the parity of bits of the input.
If I run that against a camcording of a disney film, the result is a 0 copyrighted by disney, and in fact posting that 0 in this comment would make this comment also illegal so I must disclaim that I did not actually produce that from a camcorded disney film.
If I run it against the book 'dracula' the result is a 0 under the public domain.
The law does not understand bits, it does not understand compression or lossiness, it understands "humans can creatively transform things, algorithms cannot unless a human imbues creativity into it". It does not matter if your compressed output does not contain the original.