That seems unlikely to me. One side is made up of lots and lots of entrenched interests with sympathetic figures like authors and artists on their side, and the other is “big tech,” dominated by the rather unsympathetic OpenAI and Google.

The other side however has the "if you restrict us, China will win" argument on their side.

That argument is easy to politicize and selectively ignore. See: renewables and EVs.

Yup, just like the post-copyright era followed the dawn of the internet and the emergence of Napster.