I'm suggesting there should be a path to complain to Cloudflare without the site being put into the loop, for cases like this where the site is not acting in good faith.
There is. Twitter mobs seem very effective these days.
The problem is what they do is legal, beneficial (because we have a lot of bad people) but not without downsides (again, because it helps some (or the same) bad people).
Since there's no easy way to sort out people and content it's hard to fault them for not doing so.
If what they were doing were 100% bad then it would be politically straightforward to ban it. But we already ban those things.
So what's needed is better systems, models, rules, processes that help with one of the underlying problems (eg. we need to either reduce the number of bad people or we need to get better at sorting content), then it again becomes politically simple to pressure providers to actually do better.
(One of the possible things that could be improved is a better way to do incremental changes. Currently CF can drop clients once, so they are not going take this lightly. If there were other ways to signal to clients that they are doing something problematic that would incentivize CF to utilize that incremental tool more.)