No. The paragraph as a whole refers to the "outputs" of vast troves of copyrighted work.
Disk size is irrelevant. If you lossy-compress a copyrighted bitmap image to small JPEG image and then sell the JPEG image, it's still copyright infringement.
I won't say it's irrelevant. How much you use is part of fair use considerations. Their huge collections of copyrighted works make them look worse in legal analyses.
Disk size is irrelevant. If you lossy-compress a copyrighted bitmap image to small JPEG image and then sell the JPEG image, it's still copyright infringement.