Is CloudFlare hiding that they are a terminating proxy and pretending to be a VPN for the purposes of spying on users?
The big deal isn't the technical aspect, it's what it was used for and how it was used.
They mostly make their money by selling you better services on their CDN such as image scaling etc.
Ephemeral keys (not stored for possible future leakage) quickly became the default, and assumptions about global data gathering changed. Then, all of a sudden, “free” service appears that makes all of TLS improvements, bug and small, practical and theoretical, useless. What a coincidence!
For some reason, you assume that people who have been stealing everything they can (because doing crime for the Big Guy is not a crime) consider this specific company untouchable. This is impossible. Every country in the world wants to have its spying capacity at maximum (following the shameless example), and to flex muscles at American services doing the same. The reason we only read about clashes over movie piracy and other petty stuff is because more serious matters have been discussed and dealt with.
Facebook offers “free” hosting and other services for individuals (social networks are poor walled versions of the Web). Cloudflare offers “free” CDN and other services for website owners. Actual business model is the same, lies are still lies.
Only a very specific configuration of "Confidential Computing" (based on AMD SEV or Intel TDX) where boot attestation is checked remotely before private keys are sent from an on-premise store (or a fully trusted hosted HSM) to the remote VM could prevent a cloud provider from intercepting private key material, and only then as far as boot attestation and SEV/TDX is trusted.
If it comes to light they've been doing something actionable with your data, you have a target for revenge. (As in a lawsuit, not violence)