One is how it works consistently with the current law. Ml model is basically a highly lossy compressed data format. If you collect millions of copyrighted images, merge them into a super big image, then compress it into a .jpg. Are you allowed to redistribute this .jpg file?
To me, it's mostly depending on how lossy (low quality) your .jpg is.
(Note the fact that human brains are also lossy compressed data is completely irrelevant here: you can only compare machine to machine, algorithm to algorithm. You can't say if a human has right to do X, therefore a machine has the same right to do X.)
But this line of thinking, while consistent to me, is dangerous. Because it means open models like Stability Diffusion are more likely to be illegal than a closed one like MidJourney, since it's closer to the source materials. If closed models end up being legal but open models don't, it would be a big loss for our society as a whole.