I think this kind of stuff should be treated as revenge porn, and Twitter should absolutely get sued for letting it go on.
An other article mentioned it was up for 17 hours and had 45 million view. I find it hard to believe twitter didn't know about it 15 minutes after it was posted. We also have the tech to know when an image is NSFW and when it includes certain celebrities.
That being said, it shouldn't matter if it was generated, photoshopped or drawn. This is going to get muddied and Microsoft absolutely has a horse in the race.
Distribution must be legislated, not how it's created. Microsoft and company want to cut our access to free AI and replace it with a subscription model. They are banking on an emotional response.