Yes, without a third option, the question is, which is more important, freedom of speech and expression, or the freedom for business to choose who they serve?
If it were a protected group like LGBTQ, Cloudflare could not discriminate against them (the gay wedding cake is an example of this). So we've already decided, as a society (or rather our politicians have), that businesses must service protected groups. How far of a slippery slope is it to extend that protection to everyone?
The difference between this and the wedding cake example, is the couple could have easily gone to another bakery. With the internet controlled by a small group of companies in a particular region, and SV's bias towards liberalism (in a capitalist sort of way), it makes it harder to just find another bakery.
I can see the frustration. Imagine if the roles were reversed and the US internet was controlled by a conservative group in Texas (as it almost was) and those companies decided they didn't want to host packets or register LGBTQ type websites; we'd be livid. I mean we have to treat all speech equally, don't we?
It's an interesting dilemma.