Unless the image generators routinely generate specific works produced by you (or other artists) then it’s not a directly comparable situation to Copilot.
Yes, this would be a good example of genuine copyright infringement that shouldn't be tolerated.
Of course, it doesn't mean that all or even most DALL-E output infringes on someone's copyright. The same is true for Copilot. I think both have many legitimate uses if and when the "copyright laundering" issue is solved.
