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This was immediately my reaction as well, but I'm not a judge so what do I know. In my own mind I mark it as a "spice must flow" moment -- it will seem inevitable in retrospect but my simple (almost surely incorrect) take is that there just wasn't a way this was going to stop AI's progress. AI as a trend has incredible plot armor at this point in time.

Is the hinge that the tools can recall a huge portion (not perfectly of course) but usually don't? What seems even more straight forward is the substitute good idea, it seems reasonable to assume people will buy less copies of book X when they start generating books heavily inspired by book X.

But, this is probably just a case of a layman wandering into a complex topic, maybe it's the case that AI has just nestled into the absolute perfect spot in current copyright law, just like other things that seem like they should be illegal now but aren't.






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