The fundamental philosophical question we need to answer here is whether Generative Art simply has the ability to infringe intellectual property, or if that ability makes Generative Art an infringement in and of itself.

I am personally in the former camp. AI models are just tools that have to be used correctly. There's also no reason that you shouldn't be allowed to generate existing IP with those models insofar as it isn't done for commercial purposes, just as anyone with a drawing tablet and Adobe can draw unlicensed fan art of whatever they want.

I don't really care if AI can draw a convincing Ironman. Wake me when someone uses AI in such a way that actually threatens Disney. It's still the responsibility of any publisher or commercial entity not to brazenly use another company's IP without permission, that the infringement was done with AI feel immaterial.

Also, the "memorization" issue seems like it would only be an issue for corporate IP that has the highest risk of overrepresentation in an image dataset, not independent artists who would actually see a real threat from an AI lifting their IP.