If they get rid of Kiwi Farms, ultimately it's not going to fix the problem. They're going to find a new, harder to harass vendor for CDN. Cloudflare's detractors are going to find a new website to talk about.
If you're talking about all websites that do this kind of thing, I have my doubts about how this would look in practice. Take down websites that use hate speech? Work to debunk hateful myths would likely get caught in that. Suspend websites that get X number of reports? Congrats, you've given botnets a far more effective tool for DDOS. Don't suspend those websites until a human analyzes them? That'd be ideal, although it seems like that's the system they have. Those humans appear to be instructed to only intervene when Cloudflare itself is the one causing harm. Kiwi Farms is hosted elsewhere using Cloudflare as a CDN.