I think this has to do with intent. If I read a book to use it for the basis of a play, that would be illegal. If I read for enjoyment, that is legal. Since AI does not read for enjoyment, but only to use it for the basis of creating something else, that would be illegal.
Is my logic flawed?
If 2 people were having sex on a table in a restaurant, that would be unacceptable. If a parent kissed their child goodbye while dropping them of at daycare, that would be acceptable. Everything else is somewhere in between. The challenge is where to draw the line and is it applied evenly.
If a parent and child can hold hands, can a hetero couple? If so, can a gay couple? Where do you draw the line, and who draws the line for all of society?