Step 2) leak cleartext from said MITM'd connections to the entire Internet
I recently noted that in some ways Cloudflare are probably the only entity to have ever managed to cause more damage to popular cryptography since the 2008 Debian OpenSSL bug (thanks to their "flexible" ""SSL"" """feature"""), but now I'm certain of it.
"Trust us" doesn't fly any more, this simply isn't good enough. Sorry, you lost my vote. Not even once
edit: why the revulsion? This bug would have been caught with valgrind, and by the sounds of it, using nothing more complex than feeding their httpd a random sampling of live inputs for an hour or two