Data transfer costs. Our registry is for our customers, and they expect to pull their images from environments outside AWS, e.g. GitHub Actions.
If that customer has a 2GB image, they want to build the image and then pull it into 10 separate matrix jobs (think like parallel Cypress tests), and they have 1,000 commits in a month, then the AWS data transfer costs are $1,800/mo, just for that one customer to pull their images.
With R2, it acts both as a CDN and since Cloudflare does not charge for egress, reduces the cost to only storage + the one-time transfer out of AWS.