It's like the compression that occurs when I say "Mona Lisa" and you read it, and can know many aspects of that painting.
So while it would be possible to create a "Public Diffusion" that took the Stable Diffusion refinements of the ML techniques and created a model built solely out of public-domain art, as it stands, "Stable Diffusion" includes by definition the model that is built from the copyrighted works in question.