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The number of bytes per image doesn’t necessarily mean there’s no copying of the original data. There are examples of some images being “compressed” (lossily) by Stable Diffusion; in that case the images were specifically sought out, but I think it does show that overfitting is an issue, even if the model is small enough to ensure it doesn’t overfit for every image.
Over fitting is an issue for the images that were overfit. But note in that article that those images mostly appeared many times in the data set.
People who own the rights to one of those images have a valid argument. Everyone else doesn’t.