The defense to training with copyright is that it is the same as how humans learn from copyrighted material. The storage or reproduction is a red herring. Humans can also reproduce copyrighted works from memory as well. Showing that machines can reproduce copyrighted material is no different than saying that a human can reproduce copyright material that the human learned from.
The defense to actually reproducing a work is that in order to do so, the user has to "break" the system. It is the same as how you can make legal software do illegal things (e.g. screen recorder to "steal" a movie)
None of this is to say that these defenses are correct/moral; but rather that this article doesnt add any additional input into whether it is or isnt.