USA had the same thing, "Cash for Clunkers". Some of the cars we were better off getting rid of. Some of them not, whether because they were rare or classic, or old but still more fuel efficient than a truck or SUV. Sure increased the average price of a used car though.
Of course. But I'm not a machine churning out an endless spew of those bits and pieces with no further creative input. I'd be on the side of giving any truly conscious entity rights (including creative ones), but LLMs are not, and I don't think ever could be, conscious. That's just not how they work, to my understanding anyway.
In this analogy, the AI uses books like a remix DJ would use bits and pieces of songs from different tracks to splice together their output. Except in the case of AI, it will be much harder to identify the original source.
More water and energy efficient to run, yes. If you have to replace them every couple of years the resources used to make new ones need to be included too though, and that will have a big impact on the comparison. That said, I have had a modern front load pair for at least 5 years now, no issues.
If you made money doing that, it probably would be illegal. You would certainly get sued, in any case.