Setting aside the strict definition of IP, this does satisfy the philosophical motivation of IP, which is to protect people making significant capital investments.
This is not too different from drug discovery where it's extremely difficult to come up with the molecule, but relatively easy to copy it. Similarly, it's really hard to create frontier models from scratch but much easier to distill them.
I'm all for framing the spirit this way, so long as we recognize that it was rather difficult to come up with the sum total of human creative output (noting also that approximately zero of the cost to produce it has been born by frontier labs so far).