I agree with most of your post, but I don't think I agree that method 2 (Reddit deal) is necessarily ethical. I know it's too high of a bar for our nation to ever clear, but I think explicit author opt-in is the only ethical source of AI training data.

Like, legally, I'm sure Reddit had the right to sell it, but probably over half their content was written before ChatGPT was ever announced. The TOS allowing reddit to make "derivative works" was largely understood to mean things like cropping photos, using your viral post in an ad, or maybe auto-translating your comment.