Most people building custom browsers are doing it to do something Chrome would disallow. One instance would only supporting one, weak-ish cipher forcing TLS to use a predictable cipher instead of choosing the best available encryption for transit. While I agree some people have cool browser projects that would be nice to use, it's a side effect of bad actors abusing the system. Most of the annoying parts of Cloudflare exist because bad actors have abused the system.
It's maddening, but it's true. I've seen tale of people having to modify resource auto-generators that created URLs with hexadecimal identifiers in them because the sequence "ad" in a URL would trip ad-blocking browser plugins. You might ask yourself "how many ad companies worth their salt have 'ad' in the URL path?" and the answer is "The ones who are worth their salt might not, but the ones who are terrible do, and they're probably terrible at other things too, like letting malware on their network."
I went to school at a place that had a policy of soft-blocking network access for any machine that a portscan detected had TCP or UDP 12345 opened, because Back Orifice defaults to that port and people who built trojan horses to allow remote access didn't change the default. It caught a reasonable number of owned machines every year.
Don't overestimate criminals; if most were good at being criminals, they could be successful in society without having to break the law. ;)
Completely possible to work around of course, but it does increase the effort level quite a bit.
So Cloudflare is intentionally breaking the web? Good to know.
Is this such a novel thing to look for outliers in web traffic and offer ways to mitigate risks?
Chrome is not, and isn't meant to be, DRM. There are DRM extensions for that, but Chrome (and let's extend this statement to any other whitelisted browser) does not try to limit what you can do to a website. The only restriction I can think of is the common ports thing, but if you want to connect to port 25 (typically for SMTP/email), go ahead and change the about:config setting and you can do it.
You would be SHOCKED how many bad actors use an outdated UA or some random string they think is funny. This portion of CFs mitigation isn't meant to be hyper-advanced detection, just bounce out the low hanging fruit. They have other security services that aim to mitigate the more advanced stuff (like the WAF).
Because if not, what you're describing is a cartel colluding to keep the market controlled by oligopolies. Regardless of whether there's a good reason for them to do so.