I still don't understand your analogy. How is 8Chan affecting "water quality" in this analogy? They were not harming the quality of service Cloudflare provides to their customers in any way, were they? The same goes for the water company providing service to 8Chan's owner; providing service to 8Chan doesn't affect the quality of service to their other customers.
But agreed, I am stretching this example very far now to make "water as a utility" conform to "Internet as a utility" - which maybe goes to show that they are not quite the same and might benefit from not treating them the same.