I agree with everything you are saying but that still doesn’t make it infringing just because it’s machine-generated.
Sure, computers can ingest writing faster than any human, and they can write faster than any human, which certainly gives them advantages. But humans at least bring an executive vision that an AI (at least anything based on current technology) can not duplicate.
Transformative technology can indeed by disruptive. I’m less worried about authors and more worried about copy editors. Should there be laws or rules changed to protect human creatives? Possibly. I’m not opposed to that in theory, but it would need to be carefully considered so that the solution doesn’t create bigger problems.
The objections I see are more societal issues. Stagnation of language and culture is a concern. Replacing entry level jobs so that there is no one to replace master craftsmen when they retire is another one. You raise absolutely valid concerns which I share. Actors and writers need to eat, of course, and I support the current strike and hope they come to an equitable solution.
I just don’t see how this can be considered infringement when a human could (and does) slice up a bunch of different stories to tell their own new ones just like you’re saying AI does (leaving aside whether that is a fair characterization). I don’t think that works as a tool to address these concerns. I’m not sure what the right tool is.