The root of this problem is that copyright lawsuits in the US are solely handled in federal court, and it typically costs $100k+ to pursue this kind of lawsuit. As a result of this there are significant penalties for infringement, with statutory damages of up to $30k per work infringed, and up to $150k for willful infringement. This means that maintaining safe harbor protections is essential, and a platform has no choice but to err on the side of caution because of the damages at stake. If there was a small claims court, or some other venue where copyright cases could be heard the law around statutory damages could be changed, and it would be less risky for platforms to decide in favor of content creators more often.