It is a bit more complicated than that, and the legal motivation from the Copyright Office is different than what you describe.
One of the most informative cases, in my opinion, is the Copyright Office’s back and forth on Zarya of the Dawn. In their view, even thousands of refining prompts cannot be sufficient to convey copyright protection on an AI generated image since it lacks the necessary control and connection to the person. Suryast is another helpful case. I think they’re still very incomplete when you start to consider works like those from Jackson Pollock or, my personal favorite hypo, an artist with a prosthetic that uses statistical machine learning to control the end effector and thus the paintbrush. But those are just hypotheticals for now.
I help chair a conference of IP attorneys and others who specialize in software licensing and AI so we’ve been talking about this for a while now. We actually just had the conference this week so I can probably share some resources or presentations if people really want to get nerdy about it.
Corporatism has had a hold on the political and legal system in the US since the beginning, just to varying degrees. Shareholder primacy gained a foothold in the 30s and 40s alongside the decay of antitrust law. Prior to that, the Lochner era of cases defined the era of corporate control. The late 1800s had robber barons and oil and railroad tycoons killing people with private police forces. Slave plantations and the vestiges controlled the South, and with it the rest of the country, since the 3/5ths compromise and before. We are just in a new form today with tech companies controlling everything, including the public forum, while SCOTUS green lights everything in favor of corporations, conservatives, and the wealthy, and Congress is absolutely deadlocked. It is definitely a far side of the pendulum swing, and it might be the one we can’t realistically swing back from any time soon, but it is well within the political and legal themes of the US historically.