This is all technically correct. Although I think it's a little naive to say that a corporation "cannot" do something today. There are lots of things they technically cannot do yet it happens on daily basis.
Not at all. They should find an alternative that cannot be just unplugged on demand.
Unless they sort out their funding (find someone that is not Google for majority of their money), people shouldn't care.
Today I saw a post on a gardening instance self hosted by someone, which contains only one gardening community.
It was small and OP said thanks to the few frequent visitors and traffic from other instances accounts but they are shutting it down since someone posted (I assume) CSAM material on their instance. Doesn't want to risk it of course so a nice community now has to leave.
Gpt/Bing attempts at python code for excel lmao, full circle, ai training on itself