Because violating the law was the prerequisite to starting their business, without it they're worth $0 and have no models. They've already survived Training on customer input may help the models but it isn't "bet the farm" helpful. Now, they have a thriving business, so they shouldn't risk their business for incremental data that they can buy.

At this point, the reputation of the business matters too. Fable explicitly didn't support zero-retention usage, and it saw significantly lower adoption vs other flagship models, and their past releases. Being caught abusing enterprise contracts is really hard to dig out of.