There's no moral high ground here, it's just that nobody would invest in training publicly usable models if they could be easily distilled. Not that I think there should be laws against it or that such laws would even work; they're going to have to protect themselves.
Fewer people would create scientific or artistic works if they could just be copied or used without protection either; or so is the premise behind copyright and intellectual property; even being deeply embedded into the US Constitution (Art 1, Sec 8, Clause 8).
There is sooo much irony here.