Great start, and then...
The starting premise is fine - subscription fees for software that can be bought once are a bad deal for consumers. Certainly we shouldn't allow Microsoft to artificially tilt the table in favour of subscriptions by making on prem purchases more of a short term loan.
However. the suggestion that AI could be used to take any software and recreate it as a legal "loophole" to ownership is.. problematic. In the short term, AI is not a "one click software duplicator" - and may never be, depending on who you ask. It therefore requires a reasonably competent team and some reasonable expenditure and effort to generate our imaginary "legal copy" of software. This may be great for groups that want to dismantle profitable businesses (or instantly compete with them), but it's less so for people who want to build new and innovative software. We're in a situation where it's expensive to create new applications and tools, and even more expensive to establish a market, but relatively cheap to reduce the value of that market to near zero. This destroys the potential reward for writing new software.
Suddenly we're in a world that looks like the early industrial revolution - once someone else has a good idea and proves it (the expensive part), it's incredibly easy to "rip it off" and basically remove all reward for the inventor. We quickly figured out that this caused chaos, and strongly disincentivised innovation... and patents were born.
(At this point, half of the people reading will stop reading and just go and downvote).
In the modern world, the rise of corporatism, legal warfare and overreach of patents has certainly caused a lot of problems. I can absolutely understand the desire to "rip it all up" and make the whole world free. However, the harsh reality is that a lot of evidence is pointing towards this sort of freedom largely benefiting corporate giants, and rarely benefiting individuals. The enthusiastic supporters of free software point to a very healthy ecosystem of projects, frameworks, tools and applications. What they don't point to is the people who have to work a day job to pay their bills, the projects that struggle for support, the immense effort successful projects have to expend on constant fund raising and support, or the burnout many maintainers experience.
No - I'm not advocating patents. Or supporting Microsoft. I'm pointing out that people have real world physical needs - food, shelter, comfort - that must be met. If we use (corporate supplied) AI to make ownership of software rights unenforceable, the only people who benefit are the corporates who charge subscriptions for AI tools. We need to ensure that creative works, innovation and even simple toolmaking provide fair reward to the people that do them. That's the challenge of our age, and anyone telling you there's an easy solution is selling snake oil. No matter how wonderful the promises of the AI giants sound, we are not living in an age of abundance, just rapid change. Up until AI puts food on our tables for us, we have to protect individual workers' rights - and that includes the rights of protection for their work. Sure - they can choose to waive those rights if they want to. Many people in the wealthy West can afford to do so (or could, whilst we had a booming economy fuelled by endless cheap credit) - but no matter how much we might want to punish Microsoft, forcibly removing rights without option hurts all of us.
TLDR; the vision AI hypesters sell of infinite free software is a mirage, and the legal loopholes they wish to encourage do not magic it into existence - instead they harm the workers and individuals who actually drive our industry. An industry shorn of legal protection is one that is at the complete mercy of corporate giants far worse than Microsoft.