No, that's the current legal precedent within the US.

Kelly v. Arriba Soft

The court opinion:

"The Court finds two of the four factors weigh in favor of fair use, and two weigh against it. The first and fourth factors (character of use and lack of market harm) weigh in favor of a fair use finding because of the established importance of search engines and the "transformative" nature of using reduced versions of images to organize and provide access to them. The second and third factors (creative nature of the work and amount or substantiality of copying) weigh against fair use."

That "compression is transformative" principle has been pretty solidly enshrined as precedence at this point (IE Perfect 10, Inc. v. Amazon.com, Inc.) however with no real guidelines as to what amount is required to be considered transformative

The major argument as to whether the sort of LLM training in the parent article still constitutes fair use or not depends on whether there exists "market harm" or the "substantiality of copying" is especially egregious (note that these are the two fronts that the NYT is taking.) There is precedence for copying of style not being fair use Dr. Seuss Enters., L.P. v. Penguin Books USA, Inc. which I suspect is why NYT is approaching it the way that they are...

Now, all that being said, my personal opinion is fuck the US legal system and fuck copyright. There is no solution to the core issues surrounding this topic that isn't inherently contradictory and/or just a corporate power grab. However, the "techbro idiots" are "right" and you're not, but it's because they are idiots who are largely detached from any sort of material reality and see no problem with subjecting the rest of us to their insanity.