Earlier quoted context omitted.
So, you're saying that using HTTP instead of HTTPS doesn't increase the privacy of users? I'd say that it does "increase" the privacy, although nobody is saying that it fixes every hole in the boat...
Speaking strictly, you're right, but when you consider (a) Cloudflare's connection to your server is insecure (b) Cloudflare is listening in on every request (c) Cloudflare blocks VPN and Tor users, it doesn't seem like such an obvious decision. But that's a false dichotomy, since everybody should use HTTPS, nobody should use HTTP, and, most importantly, nobody should be okay with third-parties snooping on your users…
I had the same initial thought about (a), but the comments mentioned that CloudFlare issues a certificate you can install on your origin servers which will allow secure connections with CloudFlare.