If you train a LLM on harry potter and ask it to generate a story that isn't harry potter then it's not a replacement.
However, if you train a model on stock imagery and use it to generate stock imagery then I think you'll run into an issue from the Warhol case.
I wouldn't call it that. Goldsmith took a photograph of Prince which Warhol used as a reference to generate an illustration. Vanity Fair then chose to buy a license Warhol's print instead of Goldsmith's photograph.
So, despite the artwork being visual transformative (silkscreen vs photograph) the actual use was not transformed.
So if I or an LLM simply doesn’t allow said extraction to occur, memorization and copying is not against the law.