I think your attempt at a distinction in paragraph 1 actually proves my point. Yes, GPL covers binaries, or however else the code is distributed. Just like how copyright law protects a Miles Davis picture on an album cover, a CD liner, and on a web page when it is "mostly-the-same."
Baio was mostly the same. Koons was not. See these. http://newsgrist.typepad.com/underbelly/images/silksandals.j... http://newsgrist.typepad.com/underbelly/images/koonsniagara_...
The second picture by Koons is transformative. Baio's is not even close to Koons.