You're mixing several valid criticisms of the tech industry with a really invalid critique of Free Culture[0]. If it were true that "taking away the opportunity for individual financial and ego success" meant nobody makes creative works anymore, then we wouldn't have Wikipedia, the SCP Foundation wiki, GNU, or Linux. I also want to point out that it was specifically the Free Software people who fired the first shot against generative AI, because a lot of our licenses are designed to resist enclosure of the commons.

Yes, the tech industry is an interloper in an industry that has had long-standing sweetheart deals with governments both liberal, neoliberal[1], and otherwise. However, that industry - the creative industry - was not at all pro-artist beyond making sure artists had something worth stealing. The tech industry started out not understanding the creative industry's norms and laws, but has long since graduated into facilitating new versions of some of its worst abuses. We're not the same tech industry that gave the world Napster anymore. The whole reason why, e.g., Apple gets to charge a blatantly supra-competitive 30% on every purchase on iPhone comes down to copyright ownership over iOS.

To wit: most of the biggest cheerleaders for generative AI are in the creative industry. You have CEOs ranting and raving about how once the plausible sentence generators are up to speed, they can fire entire classes of artists and workers. Videogame companies make voice actors audibly consent to voice cloning at the start of each recording session. The RIAA is not suing Udio to protect the role of musicians, they're suing so they can produce a "licensed" model that nicely cuts artists and bands out of their royalties.

Yes, the people in the GenAI space have a "fast and loose" interpretation of copyright, but that's less "information wants to be free" and more "we'll ask for forgiveness and take a license once all this AI fairy dust pays out". Licensed GenAI is not going to be any better than the current state of affairs because the threat of GenAI is not the copying of any one individual work. Copyright is an individualistic system, and ownership is for owners, not workers. And even if you decide you'll never license your specific work to AI, someone else will, and the system will still work the same.

As creative workers, the threat to you from GenAI is from collective obsolescence, a loss of social position and privilege, and decreases in your material standard of living due to the above. Copyright exists to perpetuate capitalism, and thus considers none of those consequences to be violations of the law. There is no copyright law that would, say, prohibit soundtracks in motion pictures so that live musicians could continue playing in theaters[2]. The law could require the specific artist who wrote and recorded that soundtrack to be paid, but that's only one person, getting a far larger windfall. Everyone else got screwed and the artistic landscape got just a bit more unequal.

[0] as in, people who want copyright-free / freely-licensed cultural works and do so legitimately through consent

[1] Fascism with extra steps

[2] To be clear, GenAI is not like having a soundtrack in a movie, the analogy just happens to be illustrative of my point.