I agree AGIs aren't going to happen soon. But it sounds like we agree they WILL happen. LLMs do have one important thing in common with humans, their output is transformative based on what they learn.
I think what you take issue with is the scale. People wouldn't care if this was something that existed on one computer somewhere. Where someone could type, "Write me a spooky story about Top Ramen in the style of Stephen King". It's that anyone can get a story in Stephen Kings style when all OpenAI had to do is buy a couple digital copies of Cujo. However, no one is upset that James Cameron bought one ticket to Pocahontas and thought, "What if that were on another planet?". But 400 million people saw that movie.
People want to protect creatives buy casting a net over machines saying they can't use the works of artists, even when transforming them, without payment to the original creator. While that sounds like it makes sense now, what happens when the distinction between human and machine disappears? That net will be around us too. Corporations will just use this to empower their copyright rule even further.
Stephen King was largely inspired by Ray Bradbury and H.P. Lovecraft. I doubt he paid them beyond the original price of a couple books.
BTW thanks for the thought provoking conversation. None of my friends care about this stuff 😅