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Taking other people’s creative works to create your own for-profit product is illegal in every way except when AI does it. AI is not a person watching videos. AI is a product using others’ content as its bricks and mortar. Thousands of hours of work on a project you completed being used by someone else to turn a profit, maybe even used in some way you vehemently disagree with, without giving you a dime is unethical and needs regulation from that perspective.
Very yes. They could reveal their location for starters, which could spoil a mission and put lives at risk, but if they use the same device on both this and the ships network, you risk compromising the ship’s network or even the Navy itself, giving our enemies all kinds of sensitive info.
We are in the midst of a world war being waged in cyberspace and the US is losing. Incidents like this are a genuine threat.