Public domain / communal property is also part of copyright, so it's not as if this is some forgotten concept that needs to be restored to the discourse.
Georgism is underconsidered, though.
> By focusing solely on the legal implications and ignoring the historical context of cultural storytelling
The legal implications are human implications and as much a part of culture as anything else. They have to do with what's fair and how rewards for effort are recognized and distributed. Formalizing this is less important in cultures that aren't oriented around market economies, which seems to be what much of this "rich tapestry of folklore" discourse wants to evoke and have us hearken back to, but that doesn't describe any society that's figuring out how to handle AI.
> we might actually limit the tools of cultural expression to comply with some weird outdated copyright thing is just...bonkers.
What's bonkers is the life in the literally backwards idea copyright is (or should be) mooted or outdated by novel reproduction capabilities.
Copyright became compelling because of novel reproduction capabilities.
The specific capabilities at the time were industrialized printing. People apparently much smarter than the typical software professional realized that meant some badly aligned incentives between (a) those holding these new reproduction capabilities and (b) those who created the works on which the value of those new reproduction capabilities relied. The heart of the copyright bargain is in aligning those incentives.
Specific novel reproduction techniques can change the details of what's prohibited or restricted or remitted and how and on what basis and powers/limits of enforcement, etc etc. But the they don't change the wisdom in the bargain. The only thing that would change that is a better way of organizing and rewarding the productive capacity of society.