I think it really comes down to your threat model though and what tradeoffs you're willing to accept for anonymity (e.g. captchas, performance, etc).
I think the sweet spot for CloudFlare's offering is if you're in a country or service provider that takes liberties in overriding DNS responses.
That’s assuming they can’t just get into your home network through zero days, which an individual has no practical defense against.
Then hope that said provider is reputable enough to be up to date on their security, and honest enough not to just cave under pressure.
Realistically the VPS solution fails simply because there is no obscuring of traffic. We all know that security through obscurity isn't real security. However if a VPN provider has 1,000 users using their IP block than any specific traffic is harder to isolate to one user. -- Presuming they are honest and not keeping logs.
Running your own VPS means that all traffic is owned by you.
As you've mentioned, if someone wants to track you through Tor, that's still potentially possible. But that's a completely different ballgame than "My ISP wants to track every last website I visit so they can pair that with my address/billing info to sell to advertisers". I don't think my ISP is going to go through all the hoops to find my Tor exit node, just so they can sell that to advertisers. Passive onlookers can be untrustworthy too.
The shades on my windows keep people from seeing me change, but if someone really wanted to see specifically me naked, they could probably enter my house and make the shades useless.
I still consider the shades useful.
Of course you have more options, but it's not TOR.
Edit: I mean TOR only figuratively.
https://boingboing.net/2016/07/01/researchers-find-over-100-...
That would match to individual IP, or potentially an individual if you're logged in.
The entire point of choosing a good VPN is to get the visible data off of your immediate ISP, since they know who you are, and into a more nebulous net, where others do not.