Yes, the lack of transparency about sourcing greatly concerns me. Maybe if it's hacked up enough, it'll count as "fair use," but I just fear a case where, due to a roll of the dice, enough is NOT changed that an original work is still identifiable. Even if it's mutated enough to be legal per Fair Use doctrine, it still might LOOK derivative, and that could still be bad for PR.

In any case, if I ever post anything created with Midjourney, etc., I intend to indicate it as such. I figure I'd best be as clear about that as I can.