Right, so it seems that distilling an AI model is legal too then. At least it is somewhat similar.
In general yes. Cut it down to a reasonable amount of time and I'll care a whole lot more about those 'rights' holders.
There are plenty of good reasons to not use Anthropic's services. If you don't like their terms of service, do stop using them! I personally think Anthropic's increasingly successful attempts at regulatory capture are even more distasteful.