Linking is very different from downloading or copying

It depends on the contents of the link. Is it a bare URL? Is it a text "click here"? Is it the title of the linked page? Is it a snippet of the linked page? You can quickly see how linking can incorporate copying depending on how it's done. As you acknowledge further down:

BTW a lot of posts in c/canada have snippets copied from the linked articles. How is this any different from FB and google showing links and snippets?

On the point of profitable instances:

What if an instance is getting enough donations to be considered profitable? Drawing the line at profitability just punishes success and efficiency.

When such a successful instance begins having a "significant bargaining power imbalance" (with news businesses), then it isn't and they'll become subject to the law and will have to negotiate payments.