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> Secondly, considering Cloudflare would MITM all traffic, it would make a data good source for the NSA, thereby violating all user privacy.

This seems like a weak argument. Should we just take down anything widely accessed because it might be used by the NSA? What about AWS?

Yes, that's pretty much the view in Schrems II from the European Court of Justice. The CLOUD Act does not respect data protection rights.

Is AWS providing DDoS mitigation services now, coupled with MITM access to user traffic?

They're the man at the end, actually. No extortion necessary.