As far as I know they terminate all TLS; it’s one of the tradeoffs using them.
This may tell you something about how keen Cloudflare are to handle traffic they themselves cannot decrypt.
Realistically its a totally different product, and 5 digit price is probably cheap relative to competitors in that space.
You do ideally want your own /24, though even that's not a hard requirement. And it can be provider-assigned space as long as your provider is willing to sign an LOA for you.
As for competitors, there are a few that start in the low 4 digits per month for similar services. That's not to say Cloudflare doesn't have anything unique to offer though, they're great at scale and standardization.