5 years ago I might have agreed that Cloudflare should intervene a lot more. Now I don't.
Can you expand on this a little more. What were your thoughts 5 years ago, what changed your mind?
The most immediate reason for that is of course that you grant them that right when you sign the customer agreement, the default one even containing:
> Additionally, we may at our sole discretion terminate your user account or suspend or terminate your access to the Service at any time, with or without notice for any reason or no reason at all.
Besides, if a domain owner can switch to Fastly, Akami, Cloudfront or any other CDN, are we really solving this problem in the right place, or are we just giving Cloudflare extra responsibilities and powers that they shouldn't have?
> especially in light of the downsides of them having that responsibility/power being as large as they are.
No clue what you're referring to. They almost certainly already do this, they may just be doing it badly.
You just made that up and also failed to define what you deem "malicious content" at first place. What ethics framework are you even talking about?
It seems obvious that something phishy is going on, but that's for law enforcement to figure out. They can then instruct Cloudflare to take down the infringing site. It's not up to a random individual to tell Cloudflare to take down random sites, and it's not up to Cloudflare to decide on questions of law.
It's "innocent until proven guilty in a court of law", not "innocent until accused by a random dude on the internet".
If someone calls my office and tells me that one of our customers is doing something illegal, I will not, under any circumstance, forward that information to law enforcement. Why would I? All I have is an unproven accusation by someone I know absolutely nothing about! What, exactly, is stopping the person making the accusation from calling the police himself, instead of me? Why is he contacting me - is that because contacting the police would get him into legal hot water? If so, would it be wise for me to act as his unpaid proxy in this? No, of course not!
Again, we still don't even know if the person making the accusation is in fact the injured party, or guilty of the very fraud he is accusing the other website of! Why are you trusting him at all? You don't know either party, you don't know the websites, so what are you basing your preference on?