This is at least a reasonable premise, and you seem to understand my core point: artists do real work that deserves compensation. Copyright only matters to me insomuch as it's the currently existing framework artists must operate within. I do not want that to be the case, but my wishes aren't going to change artists' reality today or tomorrow (but the day after? Maybe...).
I disagree with the "local model" argument specifically because normalization is part of the billionaires' strategy. Regular people, who make up the vast majority of users, don't know the difference between ChatGPT, Claude, and some open model hosted by their company or tech savvy nephew. Most will use them interchangeably without a second thought, because it's all a mysterious magic black box.
So while I can see the merits of goofing around at home, putting that stuff out in public is just another piece of that normalization strategy.
My other beef is that even among the open models, a fair number were still trained with data that wasn't consensually given. They benefit from the same processes that created Sora, etc. I'm sure there are people who are trying to create ethical models that can run locally, but it's harder when you can't scrape the entire library of Sony Music or deviantart.
At the end of the day, I want to ensure people (not corporations) are provided for. Capitalism is obviously no solution to that problem, but it is the problem we must soberly face today and tomorrow, and we need to be aware of how what we do, even in silly moments, can have a larger cumulative effect.