Yeh, I'm well aware of what Cloudinary does and I've used it with clients.
I've also used CDNs and CMSs to achieve the same thing including invalidating images in CDN caches when they change
Given the choice I'd always go for a solution that uses one of the good three CDNs combined with a CMS that can invalidated edge content
Regarding the DAM: CMS and Ecom systems are indeed getting better, but media assets you upload to them become siloed in the CMS. Cloudinary acts as a headless DAM that you can embed in any CMS and use as a single source of truth, relieving a lot of the pains of handling media files and their versions.
FD: I'm a Cloudinary employee