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For generations, booksellers have worked to preserve humanity's writing.However, the recent revelation that millions of print books are being scanned to train artificial intelligence models and then destroyed presents an unprecedented challenge.
While a federal judge ruled the destructive scanning of legally purchased books qualified as transformative fair use-alteration of an original work for a new purpose-the practice has sparked a growing wave of public outrage.

Why would anyone think that was illegal?

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It's certainly not illegal. There are free market ways to protect physical books, like what Larry McMurtry did when he was around.

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How did it end up in front of a federal judge?

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The suit was probably brought to shine a light on the practice. It is doubtful the lawyers believed in the case.

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Who pays for that?

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IMO this issue has enough juice to become a thing. I could imagine lawyers wanting to plant their flag on this issue.

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How can this become a thing?

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Maybe not for mass market commercial paperback, but if rare or out of print books are going into the shredder, I can see some laws getting passed about that.