AWS, may be, subsidizes the costs of its loss-leaders by (what seems like) charging disproportionately for egress. I reckon, as Cloudflare gears up to take on incumbent cloud leaders, it modus operandi will be to commoditize its competitor's advantages.

Apart from CloudFront and Lambda@Edge, Cloudflare has offerings that compete with Lambda (Workers Unlimited), Web Application Firewall, AWS Elemental (Stream), and (app/network) load balancers (Argo, Spectrum, Magic Transit). Check out Cloudflare's bandwidth / usage pricing for some of those, and it isn't much different than AWS.

Cloudflare, I'd predict, will eventually arrive at a similar pricing model for its IaaS outside of the Bandwidth Alliance (which, ironically, is Hotel California with select though multiple providers at play).