It's kind of funny that we have Google pushing to force everything to be HTTPS, and in response everyone adopting a service provider that MITMs them through shared proxies written in a memory unsafe language, and doesn't require a certificate or even HTTPS from the origin site (so that third parties can still do MITM attacks), etc.
It's still an improvement over an `http` scheme site in an absolute sense -- at least it protects customers from their own ISP or unencrypted wifi -- but it also hides the insecurity from the user. Oh, well.
Maybe what we really need is strict liability for data breaches. A few companies getting successfully sued for $100 per user account after a breach would actually start to change the culture around security.
Fortunately I don't need them, if you are in a position where a CDN is a must then that is a decision you're going to have to live with (or find another one than CF).
The real problem is the other stuff they do, like defense against DOS attacks.
TLS between users and a proxy protects users from lots of different attacks (including the lovely wpa stuff). It's useful, and the alternative is frequently "no TLS at all", not dyi.
Yes end-to-end is better. But you're still going to have to trust infrastructure providers along the way, whether it's at the proxy level or they can just read your disks.
Also I pretty much agree with everything you said about CF ...
Cynical answer: The padlock, the "https://" in the address, etc. A phony sense of "security".
CF's comfort with playing man-in-the-middle should not surprise anyone familiar with the company's origins in examining the content of web traffic. Remember Project Honeypot?
A typical scenario is surfing in public wifi (cafe, airport). Someone could identify a victim and MITM the connection. If the connection is secure to CF, they'll be mostly out of luck.
It won't be quite as fast, but it'll likely be more than fast enough.
https://puu.sh/y1RUm/03b77351ee.png from https://www.cloudflare.com/ssl/
The flexible SSL option is just much easier to deploy. It tacks on TLS without any server reconfiguration. Whether or not you want that is another thing, but it certainly has a market.
Literally, no reason to not use that option.