This is OK and fair use: Training LLMs on copyrighted work, since it's transformative.
This is not OK and not fair use: pirating data, or creating a big repository of pirated data that isn't necessarily for AI training.
Overall seems like a pretty reasonable ruling?
First, I dont think publishers of physical books in the US get the right to establish a contract. The book can be resold for instance and that right cannot be diminished. But secondly adding more cruft to the distribution of something that the end user has a right to transform, isn't going to diminish that right.