The conversation here is mostly moral and ethical but the problem here seems to be financial.

Anthropic and OpenAi are spending a $$$$ to "distill" human output into an AI model, then others are spending $$ to distill their AI model into a near-equivalent model.

This is the same reason IP rights exist. On the surface, something like a patent feels ludicrious and even feels morally wrong. Some guy wrote down the recipe for arranging atoms or bits in a particular way, and now I can't!? However, it's designed to solve the same problem, figuring out and describing the process is much more costly than replicating it.