IMHO AI generated content should be treated the same way with how human generated content and I don't see the problem. However as with technology the problem is a bit different, e.g.: When subletting your apartment requires manual effort, this is not a problem. Automated, it became an industry and that's a huge headache. I think this is the key point where the derived work has unlimited possibility that they want to curb it early on. In a way it's a fair effort to keep human's competitiveness but may prove to be futile.