The value of software has never been tied to the cost of writing it, even if you don't distribute it your still breaking the law.
1. An LLM recreating a piece of software violates its copyright and is illegal, in which case LLM output can never be legally used because someone somewhere probably has a copyright on some portion of any software that an LLM could write.
2. You read my example as "copying a project without distributing it", vs. "having an LLM write the same functionality just for me"