Cloudflare is 100% in the wrong. It's like owning a restaurant where a robbery is discussed; should the restaurant have its license revoked? Should the people who provide milk, fruit, meat to the restaurant permanently stop doing business with them because of that? No they shouldn't. Individuals are responsible both for their behaviour and their reactions to the behaviour of others. This is yet another precedent set where people who hold views, however acerbic, that are contrary to the "mainstream" are simply cancelled. It's an environment akin to the catholic church of the middle ages, or to some insane dictatorship where everything the ruling party says and does is right and everyone else is wrong.
From removing the dislike button on youtube, mass censorship of comments, paypal and other payment providers refusing to do business with people they deem "problematic" and now this, it seems like the liberal west is only nominally liberal (don't even get me started on inane "ESG Scores"). It used to be the puritanical conservatives that were against everything and now it seems the pendulum has swung the other way. While I personally find kiwifarms and such sites to be utterly disgusting and revolting, their cancellation is yet another precedent set in what seems to be a nascent global hegemony that will eventually turn feudalistic.