> Also republish them, charge money for it or limit usage
Of your copy or derivative work, not of the public domain one you copied. The fact that they tried to force their limits on other people using the public domain works is what is the issue here and is not fine.
> you might just get a jail free card because you can claim
That seems entirely the wrong way around. Getty knows it is public domain because that is where they got it from. The fact that they sue for damages despite this should put them in contempt of court and not me in a position where I have to defend myself.