IMHO AI generated content should be treated the same way with how human generated content and I don't see the problem. However as with technology the problem is a bit different, e.g.: When subletting your apartment requires manual effort, this is not a problem. Automated, it became an industry and that's a huge headache. I think this is the key point where the derived work has unlimited possibility that they want to curb it early on. In a way it's a fair effort to keep human's competitiveness but may prove to be futile.
> IMHO AI generated content should be treated the same way with how human generated content and I don't see the problem.
The problem is that AIs don't have rights. So you literally can't treat it the same.
If I "make" something in a way I'm not allowed to (e.g. copying), the law will go after me. If AI makes something I'm not allowed to, I can just say "whoopsie doodle", blame the AI, and there are no repercussions for anyone.