Copyright and performance rights are two separate things. It's completely fine for me to go and perform (not record - that does need a license) the latest hit song until my heart is content.
> It's completely fine for me to go and perform (not record - that does need a license) the latest hit song until my heart is content.
Only in private. Copyright law can give the owner exclusive rights to perform a song publicly. If the lawyers can convince a judge that your singing counts as a public performance you can end up on the hook for not getting or being covered under a performance license.
I think your copyright argument is focused on media, like music. This appears be a specific exception that applies to text. Music sampling for example is a direct copy of the recording but quoting text, even though it's a copy, is a new work because although the words are the same it's not the original copied (as in the quote is written or typed by OpenAI).