There is one missing factor in your argument. The wealth transfer. The public was almost never the beneficiary of copyright and other IPs. Except perhaps its earliest phases where the copyright had a strict term limit, it was always the corporations who fought for it (Disney being the most infamous), using it to prevent the public from economically benefitting from their work almost forever.

And then people found a way to use the same copyright law to widely distribute their work without the fear of losing attribution or being exploited. Here comes along LLMs that abuse the 'fair use' argument to break attribution and monetize someone else's work. Which way does the money flow? To the corporations again.

IP when it suits them, fair-use when it benefits us. One splendid demonstration of this hypocrisy is how clawd and clawdbot were forced to rename (trademark law in this case). By twisting and reinterpreting laws in whatever way it suits them, these glorified marauders broke a trust mechanism that people relied on for openly sharing their work.

It incentivices ordinary people to hide their work from public. Don't assume that AI is going to solve that loss. The level of original thinking in LLMs is very suspect, despite the pompous and deceitful claims by its creators to the contrary. Meanwhile, the lack of knowledge sharing and cooperation on a global scale will throw civilizational growth rate back into the dark ages. Neither AI, nor corporations are yet anywhere near the creativity and original thinking as the world working together. Ultimately, LLMs serve only the continued one-way transfer of wealth in favor of an insatiably greedy minority, at the cost of losing the benefit of the internet (knowledge sharing) and an enormous damage to the environment - all of which actively harm the public.