Absolutely correct. He is also effectively saying that since he can and will remove sites he personally doesn't like, that he personally approves of every other site using Cloudflare. The excuse he uses for terminating TDS is an absolute crock; if TDS genuinely did falsely and sincerely claim that Cloudflare supports them, then Prince could and should have simply asked them to remove that claim. It's an outrage that…
I don't think that Cloudflare (or any company) should be legally obligated to work with someone they don't like. (Besides, do you really want your wedding cake baked by someone who hates you?)
However, I think it's a moral and practical travesty that companies have the ability to effectively deplatform people from the modern internet. It's our responsibility as technologists to make sure that you cannot be silenced, whether you're a persecuted minority or someone who would persecute minorities. Having political gatekeepers to the internet is bad for everyone in the long run.