Classic mafia racket economics would claim that Cloudflare themselves created the botnet ddos problem so that they themselves could solve it, and now they have the power to do this, especially when governments ask them very sternly to do so.
if cloudflare were to host malware on their own IPs, it would have been trivial to see CF's steps.
Unless you want to suggest that CF is developing and distributing sophisticated malware and making botnets across the world