Great points but scary. If training ML models on copyrighted data becomes illegal in the US but remains legal in say China or Russia then the US will quickly fall
Behind on ML capabilities - major national security implications at the very least. I suspect if the decision went the way you suggest congress would have to change the law to allow training.
Isn't that true for all technology? In the U.S. we have the specwriter system which leads to inefficiency to get around copyright. In China or Russia they just copy the code and iterate.