Why did we start treating Cloudflare (a public, for-profit company) as the undisputed authority on anything related to the network layer of the internet in the first place?
Because they inserted themselves into almost everything we do online and basically managed to take control over it. Cloudflare should never have been allowed to man in the middle the entire internet, but now that they have they're the only man on earth with a dataset that size.
I am unaware of such a capability of Cloudflare.
I believe it is the site administrators who have inserted Cloudflare in between their sites and their users.
Usually it is done for rational reasons of establishing a protection against bots. But what is less rational, in my opinion, is when everyone uses the same provider for that.
Because it indirectly turns Cloudflare into a monopoly. And monopolies often converge to a state when they start to abuse their position.