In my view, the problem with that argument is that large actors, such as governments or large corporations, can train their own models without such restrictions. The knowledge to train them is public. So rather than prevent bad outcomes, these restrictions just restrict them to an oligopoly.

Personally, I fear more what corporations or some governments can do with such models than what a random person can do generating Biden images. And without restriction, at least academics could better study these models (including their risks) and we could be better prepared to deal with them.