That fails to recognize the tradeoff between freedom and security. Society suffers if we, for instance, lock everyone up, despite the reduction that would have in crimes. The balance between the two cannot be ignored to justify outcomes, though it is American tradition to value liberty over security when the two come in conflict.
It is american tradition to yell slogans about freedom while not favoring it at all.
Until "Good of the goose, good of the gander" is honored in good faith, this is a strict, hypocritical loss.
Attorney-client privilege is a special carve out because the courts have recognized that clients need to be open and honest with their attorneys to get proper counsel and representation.
This ruling is the court declining to extend that special carve out to non-lawyer AI tooling, and keeping the status quo of contemporaneous documents made by someone discoverable, whether or not shared with a third party. The judge draws from the TOS as an admonishment, effectively saying (my words, not the judge) the TOS should have put you on notice that you have no expectation this data is confidential.