This is the argument that bothers me:
The court also identified a third argument, which the authors didn’t pursue in great detail; market dilution. Under this theory, AI models trained on copyrighted works can generate “countless works that compete with the originals, even if those works aren’t themselves infringing,” Judge Chhabria wrote.
So, even if what you make isn't infringing on their rights, its still competing with them which should be forbidden. That whole argument is a machine shouldn't be allowed to compete with a human. So, if I am inspired by another's work, that's ok, but if a machine does that we need to ban it.