It becomes a potential tragedy of the commons and an effective monopoly eventually. Most people don't really have a problem with Cloudflare being the best DDOS; it's when they are also the best CDN, DNS host, etc that the possibility of becoming the single point of failure grows.
Tragedy of the commons applies to a community shared resource not a service like Cloudflare. Effective monopoly makes a little more sense but I guess I sort of object since there is literally nothing other than money preventing someone from competing with them.
Switching costs for Cloudflare are effectively 0 other than the cost of using a less effective competitor. I could turn them off right now for my properties and have almost no impact. They still have to compete to maintain that position so monopoly doesn't feel like the right term here.
I don't follow this at all. The open interconnection of the internet still works no matter what Cloudflare does. My users can still get to my site. When they no longer can because of Cloudflare I can easily drop them and/or switch to an alternative. Cloudflare is literally not capable of preventing people from reaching my site unless they ask me to. The minute they cause a problem I can drop them. There is no shared commons problem or monopoly problem here.