Yes and No
the problem with Cloudflare is not simply the fact that DNS is centralized, it is a combination of all their services that is concerning for Cloudflare,
between the DDOS Proxy, the CDN, the Other Services, and now DNS that is a lot of services in a single basket, so while it is true that dns is some what centralized, having all traffic and all services dependent upon a single company seems to be a bad idea to me
But clearly everyone sees not issue with it provided they "claim" to providing a "privacy first" service for free (ya riiiiiggghhhhttttt and Facebook cares about their users privacy as well) and they have better performance, who cares what the long term effects are...
We should be working to make DNS less centralized, or replace it with something less centralized, not moving to DNS over HTTP to a few "cloud" providers who also control all of the content...