> Is it possible that it could be both? That while artists maybe do feel under attack in terms of competition, that there is a genuine ethical dilemma at hand?
The rights artists have over their work are economic rights. The most important fair use factor is how the use affects the market for the original work. If Disney is lobbying for copyright term extensions and you want to make art showing Mickey Mouse in a cage with the CEO of Disney as the jailer, that's allowed even though you're not allowed to open a movie theater and show Fantasia without paying for it, and even though (even because!) Disney would not approve of you using Mickey to oppose their lobbying position. And once the copyright expires you can do as you like.
So the ethical argument against AI training is that the AI is going to compete with them and make it harder for them to make a living. But substantially the same thing happens if the AI is trained on some other artist's work instead. Whose work it was has minimal impact on the economic consequences for artists in general. And being one of the artists who got a pittance for the training data is little consolation either.
The real ethical question is whether it's okay to put artists out of business by providing AI-generated images at negligible cost. If the answer is no, it doesn't really matter which artists were in the training data. If the answer is yes, it doesn't really matter which artists were in the training data.