Not sure if you are a representative from Cloudflare. But regardless, Cloudflare intentionally made it ambiguous so that they can selectively enforce it.

For sure. But OPs point still stands, people run giant Plex servers and charge for access to the pirated content on them. Huge numbers of users. I imagine they want to enforce on those folks and not people who just happen to have their own running.

Agreed, I have been doing this for years without consequences so far