I find it a bit strange to lump a hosting provider together with terrorists accomplices.
News report about CloudFare and Lulzsec: http://www.it-networks.org/2012/03/01/how-cloudflare-kept-lu...
Because your saying that you "observe" that a company who supported a certain group of hackers, got hacked back by someone we don't even know (maybe UGNazi, but who knows for sure). And then you look at it as if it was "funny" saying something like "see, no honor between thieves".
But... there's no point. Yeah because they got hacked like any other company could have been to get access to some of their clients data. And it's not like if what they did for LulzSec was to protect themselves of those sort of attacks. It's totally unrealistic to think that just by "helping" a group of hacker they would be totally immune against attacks from other groups. Imagine if Google also had helped a pair of hackers guys, would you except that the others hackers, decide, for honor, to not attack Gmail anymore ?
Dozens, if not hundreds, of hacker and malware related sites use Cloudflare to mask their origin and essentially use the other shared sites as hostages. If you block one of the malicious sites then you also end up blocking legitimate sites, and since Cloudflare goes out of their way to not take down sites (even those hosting malicious programs- including the drive by exploits that install them) it makes it very difficult to trace the malware back to it's source or actually take it down and stop people from getting infected.
Then it becomes trivial to block a single IP, since it is assigned to a single customer you won't have any collateral damage!
If you do happen to have a report then please feel free to actually send it our way with specific details.
In fact, we respond to every single report that we receive.