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'd go a step further. If cloudflare were a branch of the government like the literal internet police, then it would be immaterial if an entity claimed they supported them. The response would be to simply ignore or refute the claim, not demand that they withdraw it lest they lose police protection.
Cloudflare is essentially performing the function of the police protecting the KKK's right to march, just like they protect the right of civil rights marchers to be free of denial-of-marchedness. The core issue here is that government-like functions on the internet are handled by an amalgamation of private entities, who are not bound to the same constitutional requirements.