It's not unlawful, it's not morally bankrupt. Noncompete clauses have been around since the beginning of human commercial activity and have a valid reason to exist - to encourage companies/people/investors to put large sums of capital at risk to develop novel technologies. If there was no way to profit from them, the capital would be non-existent.
It's not theater, it's very real. Companies are making decisions to not use data generated from openai. They are making the decision because they know if they go the other way they know they risk it being leaked via someone internal that they are doing it, that it's pretty easy to figure out during a discovery process. I'm involved in this issue right now, and no one is treating it as something to just blow off. I know several other companies in the same boat.
They have many orders of magnitude more money and attorneys that would work full-time on such a case to ensure that even if they lost the court battle, the person or company doing the thing that they didn't like would be effectively bankrupted, so they still win in the end.
You'll find that if you learn a good amount about the law, it's empowering. The courts are an adversarial place. For every person getting sued... someone is suing. It's isn't "big brother" or "my keeper" or "the man keeping you down" or however you imagine it. You can be the one exerting the pressure if you know what you are doing.
