Cloudflare takes the right approach of being content neutral.
It's unfortunate there's any limit on hosting. LE can still go subpoena CF and use judicial channels like always. CF should stay in the anti DDoS business and just annoy everyone with their captchas instead of implementing law and morality.
Child porn seems to be the exception, as it's easier to look at "stopping" such things getting near our visibility, instead of worrying about the actual incidence of the problem. (See Craigslist where AGs preferred to shut down a system they had access to, since that's visible, preferring to force "adult" users to buy and sell in uncontrolled markets.)