I actually agree with you. I think what the LLM craze has show is that the copyright/IP laws need to adapt and not the other way around.
I think it should be legal to train a model on anything that is legal to scrape (which is almost everything).
Then, if someone uses a generative AI output that violates someones existing IP in an infringing way, go after the person that's trying to monetize that output, whether it's software, an image, or writing.
The thing is, if you limit what these things can be trained on, it creates a huge power imbalance. The wealthy and nation states are still going to scrape everything under the sun and train AIs with that data along with whatever else their surveillance has gathered. If businesses are neutered from being able to do the same, we all lose.