That's true but you make it sound like it's totally obvious where the line of fair use should be drawn for AI training.

Until courts or lawmakers make it clearer I personally believe non-generative models (Whisper, ResNet, DINOv2) should be legally trainable on publicly released data. Generative models (image or video generation, TTS, LLMs?) should be held to a much higher scrutiny since their outputs can potentially compete the creators who put a lot of creativity into their art. That not true for an ImageNet-trained classification model or Whisper ASR.