It isn't wrong to use copyrighted works for training. Let me quote an article by the EFF here:

First, copyright law doesn’t prevent you from making factual observations about a work or copying the facts embodied in a work (this is called the “idea/expression distinction”). Rather, copyright forbids you from copying the work’s creative expression in a way that could substitute for the original, and from making “derivative works” when those works copy too much creative expression from the original.

Second, even if a person makes a copy or a derivative work, the use is not infringing if it is a “fair use.” Whether a use is fair depends on a number of factors, including the purpose of the use, the nature of the original work, how much is used, and potential harm to the market for the original work.

and

Even if a court concludes that a model is a derivative work under copyright law, creating the model is likely a lawful fair use. Fair use protects reverse engineering, indexing for search engines, and other forms of analysis that create new knowledge about works or bodies of works. Here, the fact that the model is used to create new works weighs in favor of fair use as does the fact that the model consists of original analysis of the training images in comparison with one another.

What you want would swing the doors open for corporate interference like hindering competition, stifling unwanted speech, and monopolization like nothing we've seen before. There are very good reasons people have these rights, and we shouldn't be trying to change this. Ultimately, it's apparent to me, you are in favor of these things. That you believe artists deserve a monopoly on ideas and non-specific expression, to the detriment of anyone else. If I'm wrong, please explain to me how.

If we’re going by the number of pixels being viewed, then you have to use the same measure for both humans and AIs - and because AIs have to look at billions of images while humans do not, the AI still requires far more pixels than a human does.

Humans benefit from years of evolutionary development and corporeal bodies to explore and interact with their world before they're ever expected to produce complex art. AI need huge datasets to understand patterns to make up for this disadvantage. Nobody pops out of the womb with fully formed fine motor skills, pattern recognition, understanding of cause and effect, shapes, comparison, counting, vocabulary related to art, and spatial reasoning. Datasets are huge and filled with image-caption pairs to teach models all of this from scratch. AI isn't human, and we shouldn't judge it against them, just like we don't judge boats on their rowing ability.

And humans don’t require the most modern art in order to learn to draw at all. Sure, if they want to compete with modern artists, they would need to look at modern artists (for which educational fair use exists, and again the quantity of art being used by the human for this purpose is massively lower than what an AI uses - a human does not need to consume billions of artworks from modern artists in order to learn what the current trends are). But a human could learn to draw, paint, sculpt, etc purely by only looking at public domain and creative commons works, because the process for drawing, say, the human figure (with the right number of fingers!) has not changed in hundreds of years. A human can also just… go outside and draw things they see themselves, because the sky above them and the tree across the street aren’t copyrighted. And in fact, I’d argue that a good artist should go out and find real things to draw.

AI don’t require most modern art in order to learn to make images either, but the range of expression would be limited, just like a human's in this situation. You can see this in cave paintings and early sculptures. They wouldn't be limited to this same degree, but you would still be limited.

It took us 100,000 years to get from cave drawings to Leonard Da Vinci. This is just another step for artists, like Camera Obscura was in the past. It's important to remember that early man was as smart as we are, they just lacked the interconnectivity to exchange ideas that we have.

Sure, if they want to compete with modern artists, they would need to look at modern artists

Which is the literal goal of Dall-E, SD, etc.

But a human could learn to draw, paint, sculpt, etc purely by only looking at public domain and creative commons works

They could definitely learn some amount of skill, I agree. I'd be very interested to see the best that an AI could achieve using only PD and CC content. It would be interesting. But you'd agree that it would look very different from modern art, just as an alien who has only been consuming earth media from 100+ years ago would be unable to relate to us.

the sky above them and the tree across the street aren't copyrighted.

Yeah, I'd consider that PD/CC content that such an AI would easily have access to. But obviously the real sky is something entirely different from what is depicted in Starry Night, Star Wars, or H.P. Lovecraft's description of the cosmos.

OpenAI's argument is literally that their AI cannot learn without using copyrighted materials in vast quantities

Yeah, I'd consider that a strong claim on their part; what they really mean is, it's the easiest way to make progress in AI, and we wouldn't be anywhere close to where we are without it.

And you could argue "convenient that it both saves them money, and generates money for them to do it this way", but I'd also point out that the alternative is they keep the trained models closed source, never using them publicly until they advance the tech far enough that they've literally figured out how to build/simulate a human brain that is able to learn as quickly and human-like as you're describing. And then we find ourselves in a world where one or two corporations have this incredible proprietary ability that no one else has.

Personally, I'd rather live in the world where the information about how to do all of this isn't kept for one or two corporations to profit from, I would rather live in the version where they publish their work publicly, early, and often, show that it works, and people are able to reproduce it, open source it, train their own models, and advance the technology in a space where anyone can use it.

You could hypothesize of a middle ground where they do the research, but aren't allowed to profit from it without licensing every bit of data they train on. But the reality of AI research is that it only happens to the extent that it generates revenue. It's been that way for the entire history of AI. Douglas Hofstadter has been asking deep important questions about AI as it relates to consciousness for like 60 years (ex. GEB, I am a Strange Loop), but there's a reason he didn't discover LLMs and tech companies did. That's not to say his writings are meaningless, in fact I think they're more important than ever before, but he just wasn't ever going to get to this point with a small team of grad students, a research grant, and some public domain datasets.

So, it's hard to disagree with OpenAI there, AI definitely wouldn't be where it is without them doing what they've done. And I'm a firm believer that unless we figure our shit out with energy generation soon, the earth will be an uninhabitable wasteland. We're playing a game of climb the Kardashev scale, we opted for the "burn all the fossil fuels as fast as possible" strategy, and now we're a the point where either spent enough energy fast enough to figure out the tech needed to survive this, or we suffocate on the fumes. The clock is ticking, and AI may be our best bet at saving the human race that doesn't involve an inordinate number of people dying.