IDK why you believe this. Breaking contracts is illegal. You get sued and have to pay damages. Some contracts, in some jurisdictions, may allow such arbitrary decisions. In other jurisdictions such clauses may be unenforceable.
altruistic groups
Well, that’s not something that copyright law cares about very much. Unfortunately, this community seems very pro-copyright; very Ayn Rand even. You’re not likely to get much agreement for any sensible reforms; quite the opposite. I don’t think arguing that Meta is doing the same as TPB is going to win anyone over. It’s more likely to get people here to call for more onerous and more harmful IP laws.
Both Meta and ChatGPT used books3, it’s functionally the same type of case.
FWIW, no. the NYT case and this is different in some crucial ways.