Businesses won't tolerate something like this so I find it hard to believe there is any cooperation between the two entities.
I don't think it's convincing
If this submission and this thread are any indication, it appears the "reputation" that CF customers care about has nothing to do with privacy. It relates to price, ease of use, reliability, etc.
The fact is businesses do "tolerate it"
For example,
https://en.wikipedia.org/wiki/Cloudbleed
The MITM design of CF is what it is
It creates risks, but these risks are tolerated
For example, if evidence becomes available that someone (besides CF) is spying on CF's customers,^1 then for those customers it's too late. For the network traffic that flowed through CF before the evidence became available, any privacy, secrecy or confidentiality has been lost
The damage of being spied upon, if there is any, is already done
1. It's not clear why commenters are only concerned about intelligence agencies