1. I don't believe that training LLMs on publicly-available content is morally bad. Nor do I believe that it should be prosecutable as copyright infringement, any more than I believe that we should prosecute humans for studying books/art/essays/movies/etc and "downloading" that information into their brains. I'm not a big fan of IP law in general (I think it's largely a crime against the people's freedom to share and riff on ideas and expression), but to the extent that we need to bring IP law into this, I only think it should be prosecutable to publish a near-exact copy of an existing work. Creating a tool/AI capable of reproducing a Lady Gaga song is not the same thing as actually reproducing and selling a Lady Gaga song.
2. Capitalist markets depend on constant competition and innovation. This is a good thing for consumers, as things generally tend to get better and better over time (look at cars, clothing, medicine, food choices, etc). The cost comes to business owners, who are endlessly forced to compete on cost/speed/availability/value at the risk of being disrupted. As a business owner myself, I am okay with this cost and do not find it morally wrong, unfair, or reprehensible. It's for the greater good, and business owners imo are the societal group least in need of charity or prioritization. And, again, the rules help consumers. When a business is being outcompeted, that's because consumers are voting with their feet for what they think is the better option.
3. Pure artists are unaffected. If you're a craftsperson, artist, writer, chef, programmer, etc who is creating for the love of creating, that's amazing. You are unaffected. Nothing under the sun can stop you from doing what you love. If you make a great burger for yourself or your friends and family, it does not matter that McDonald's has sold a billion burgers. However, once you start trying to sell your creations to others, you are no longer purely an artist, you are a business, and you will be subject to the aforementioned rules of the market. Which, once again, I think are fair.
4. Trying to skirt the rules of the market to avoid competition or disruption, imo, is not cool. It generally amounts to rent-seeking "I got here first" behavior, which benefits no one in society except for business owners who don't want to innovate. "My profession/industry was here first, and this is how it's always been since I got into it, and I like making money this way, and it's unfair for anything to happen in the market that disrupts my flow of money or causes me to change, and I'm going to use my incumbency/popularity/authority to try to change the law to stop newcomers from out-competing me or to force them to give me a cut, consumers be damned."
It is not a tragedy for a business model that used to thrive to decline. It's a natural process that has happened many tens of thousands of times, and it's the flip side of the coin called progress.
That initial investment in time/energy is what we need to protect to encourage people to do it. This goes for IP law also in the exact same way - why invest the resources into R&D if the end product will just be ripped off before you've had a chance to recoup anything?
We have a goose that lays golden eggs. We should be using the gold to do good things instead of trying to kill the goose.