That's pretty disturbing. What about fair use? What if someone wants to register cloudflaresucks.com, for example? Or what if they have a name that happens to have "cloudflare" in it (such as oortcloudflares.com, where one would presumably have information about flares of ... something... in the oort cloud)?
I get wanting to stop attacks like this one, but I'd hope they don't have the power to just indiscriminately take down other people's web site just because the name is one they don't like.