I actually like Cloudflare's expansion, as a way to compete with existing monopolies (Google, Facebook).
If I want to run a livestream for church, why do I have to send the packets all the way to Google's servers in California just so it can be on YouTube? I wish Cloudflare could host that right here in the same city. That's where most people are watching from anyway.
Or what about social networking? I'll continue to use Facebook to keep in touch with friends in other places, but the majority of my social life is with people nearby. I don't see why the messages sent from me to a friend in the same city should leave the country.
I don't know if Cloudflare would be willing to do this themselves, but perhaps there's a space for new startups in edge hosting, not just edge caching. Cloudflare's expansion could be good for privacy, so I support them - for now.