If it's artists' livelihoods you care about then you are arguing the wrong point. Copyright is not the thing that gives artists money, getting hired is. The problem is not that someone copied an artists work and used it to generate a different picture in the same style. The problem is the people who use those pictures instead of paying artists. I don't think anyone in this instance would use generated images instead of paying artists if they had that availability. The only claim that this instance is harmful to artists that has any weight is that it normalises generated images, but that's circumstantial at best.
Your problem, that artists aren't being paid, is caused by the people not hiring artists. Not some anarchists using their local models for fun. The theft happens when a would be commission gets generated instead, not when the image is processed into the model.
This is the point that you miss when you equate this and capitalists. Capitalists can afford to pay artists to create the art they want, they're just too greedy to do so.