It does the exact same thing, except supported by a global network of volunteers around the world.
Sure, you get some latency, but this is actually ideal for testing. You should know how your service operates in non optimal lightning fast conditions.
The obvious difference (and thus massive advantage) of the cloudfare product is that it is accessible over the normal internet without needing to install a tor client.
I'm sure that works for some subset of the population where all potential users are already comfortable using Tor; but imagine trying to share your PoC website with the designer/client and you are asking them to install Tor browser.
Is different than sharing your work with a client.
I personally wouldnt make it SOP to utilize a complely free service like this to share my work. I'm not saying it's not convient, it definitely is.
But you shouldn't subject a clients product to terms they probably aren't aware of.