This forced ideological posturing of 'if we give it to the plebes, they are going to generate something naughty with it' masks the somehow more cynically evil take of big tech, who are essentially taking the entire creative output of humanity and reselling it as their own, piecemeal.
Additionally I think the Dalle vs. Stable Diffusion comparison highlights the true masters of these people (or at least the ones they dare not cross) - corporations with powerful IP lawyers. Just ask Dalle to generate a picture with Mickey Mouse - it won't be able to do it.
It's not their work unless it's identical, but in practice generated images are substantially different. Drawing in the style of is not copying, it's creative and it also depends on the "dialogue" with the prompter to get to the right image. The artist names added to the prompts act more like landmarks in the latent space, they are a useful shortcut to specifying the style.
If you look at the data itself it's ridiculous - the dataset is 2.3 billion images and the model 4.6 GB, that means it keeps a 2 byte summary from each work it "copies".
Google and Meta and Microsoft all have research teams working on AI.
Putting out papers like this helps keep their existing employees happy (since they get to take credit for their work) and helps attract other skilled employees as well.
What will they do with model? figure out how to prevent abuse and incorporate into future Google Assistant, Photos and AR offerings.
Or maybe Google is using "Responsible AI" as an excuse to minimize competitors when they release their own Imagen Video as a Service API in Google Cloud.
It's quite strange when the "ethical" thing to do is to not publicly release your research, put it behind a highly restrictive API and charge a high price for it ($0.02 per 1k tokens for Davinci for ex.)
The word "ethics" has become very flexible...