the hosting site they trusted with their portfolio gets a payout which makes the use "properly licensed" since they inevitably insist they have the right to do whatever they want with anything they host

This is 100% what's going to happen. The host is going to get paid 20m for everything ever uploaded, and open-source ai models are going to disappear. Then all the artists are going to have to fork over $20/month to Adobe to use ai features.

I just have to wonder if people will realize they've been played or not. The doomer in me says people will celebrate the free market for providing them such a service.