There are limits regarding the right to take pictures in public.

This is why I said this...

commercial usage can be limited to some extents

But let's look at it this way...

https://www.earthcam.com/world/ireland/dublin/?cam=templebar
https://www.earthcam.com/usa/florida/lauderdalebythesea/town/?cam=lbts_beach
https://www.earthcam.com/usa/florida/naples/?cam=naplespier
https://www.earthcam.com/world/southkorea/seoul/songridangil/?cam=songridan_gil
https://www.earthcam.com/world/israel/jerusalem/?cam=jerusalem

So why is nothing on this site blurred? If there are "limits" why is there literally cameras being streamed of public places that can have faces in the foreground pretty clearly without consent. EVEN CHILDREN! WHO WILL THINK OF THE CHILDREN! (/s) Earthcam makes money doing this...

How about literally every company with a security camera?

Instances of creepshot photographers have raised issues of good faith.

This is never litigated under the issue of pictures in public. This is always done under stalking/harassment laws. None of them are ever just "He took a picture that I'm in".

How about if I buy stock photos and feed that into the AI system. Does that count since they didn't intend for that to be it's use? "Creepy" and "morally wrong" isn't necessarily illegal. The concern isn't the public photography and actually ownership of the photo belongs to the person who takes the photos not the subjects in the photo. So yes, you don't particularly have much recourse unless you can prove damages that falls under some other law. Case and point Paparazzi... I mean there's literally been lawsuits where the settlement was in favor of the photographer AGAINST the subject https://sports-entertainment.brooklaw.edu/media/a-new-type-of-internet-troll-how-paparazzi-use-copyright-law-to-cash-out-on-celebritys-instagram-posts/ She used a photo on her insta from that paparazzi, the paparazzi sued, settlement was reached and the photo was removed. She didn't have license to use that photo, even though it's her in the picture. You can find this shit literally everywhere. We've already litigated this to death. Now we all think that paparazzi are generally scum... but that doesn't make it illegal.

What is new here is does an AI generated thing count as something special on it's own in a legal perspective. The act of obtaining pictures while in public is not really a debate even if they were obtained to create a derivative work. I fall on the side of the AI generated thing being fair use. It's a transformation of the original work and doesn't violate your actual privacy (certainly not any more than taking pictures of a nude beach). IMO any other stance would negate so much other shit that we all rely on (meme-culture specifically) that it's hypocritical to hold any other stance. Do I like that... Not really, but it doesn't make sense otherwise.