I do think most of the "adversarial to their own customers" things are coming from a company in extreme compute crunch. Eg, if they stop abuse they have more compute to serve real customers. And some of it is coming from them being true believers that AI could be a risk to society when it gets smart enough (their talk about jobs is because they want society to prepare, because they think it will change jobs regardless of whether they make it or others).

Note that other providers are also training on the same copyright books.

I don't think anyone realistically thinks open weights can be banned, though it does raise interesting questions if the White House is going to keep banning models like Fable and GPT5.6 while open weights equivalents are floating around. Their reasoning seemed to be that they don't want foreign adversaries to have access to models that can find security issues, but a local ban on an open model wouldn't stop that.