I agree with #1, but for #2, is there precedent or case law to support your assertion? Google's Book Search is premised on the assumption that "snippet" display

I agree with #1, but for #2, is there precedent or case law to support your assertion? Google's Book Search is premised on the assumption that "snippet" display is fair use, but the suit against them was grounded in the fact that they copied entire books. Typically snippets are longer than sentences.