I see elements of that here. Buying copyrighted works not to be exposed and be inspired, nor to utilize the aithor's talents, but to fuel a commercialization of sound-a-likes.
Keep in mind, the Authors in the lawsuit are not claiming the _output_ is copyright infringement so Alsup isn't deciding that.
You're referencing Midler v Ford Motor Co in the 9th circuit. This case largely applies to California, not the whole nation. Even then, it would take one Supreme Court case to overturn it.