Isn't this copyright violation? Or do the websites have a deal with the site?
Eh... maybe? I mean, you could achieve the same end result with a proxy/VPN and your browser's reader mode - to do it that way wouldn't be copyright infringement, would it? I feel like, in principle, Outline should be treated the same.
But on the other hand, the fact that they're transforming the page server-side, and caching it there, may push it over the line in the eyes of the law. IANAL, I don't really know.
To be honest, copyright law is such a tangled mess, I don't really give it much thought. Outline does the job, and if anyone's going to get into trouble it'll be them not me, so I'm happy enough.
They will probably be auto-DMCA'd soon.