1. We're in new legal territory with these models.
2. Many people lack the intellectually maturity to accept speech they dislike. This includes regulators, activists, advertisers, etc.
3. The alignment people loudly repeat their alarmist sci-fi stories to laypeople.
4. People hate Big Tech.
These circumstances don't exactly exude stability, so companies react with caution. I don't blame them.
The situation will settle down. Case law will establish that LMs don't produce derivative work anymore than humans do. Discourse about free speech & personal discretion with these tools will soften outrage. The immense utility of LMs will build appreciation. As this technological revolution rolls out slowly over many years without major catastrophe, public panic will die down regarding sudden mass unemployment, bad actors creating misinformation wars or doomsday bugs, etc.
Today remains the best time to exist in human history. That clear trend will continue. Our imaginations will again vastly outpace the pedestrian, steady, wonderful march of progress. As this moment settles down, so too will companies regarding aggressively thought-policing AI. But it'll be a hot minute. ;)