I feel like as a paying customer a warning and migration deadline would have gone a long way.
And that further underlines the need for a grace period, if this really is the best model cloudflare can come up with (presumably it is).
I think this particular instance is pretty cut and dry. If I understand correctly, they were just reselling cloudflare's services.
However, I DO think under that vague policy they should issue warnings for cases they seem inappropriate