Cascaded deletes scare me anyway. It only takes one idiot to implement UPSERT as DELETE+INSERT because it seems easier, and child data is lost. You could always use triggers to cascade you soft-delete flags as an alternative method, though that would be less efficient (and more likely to be buggy) than the built-in solution that cascaded deletes are.
If you look at how system-versioned (or “temporal”) tables are implemented in some DBMSs, that is a good compromise. The history table is your audit, containing all old versions of rows even deleted ones, and the base table can be really deleted from, so you don't need views or other abstractions away from the base data to avoid accidentally resurrecting data. You can also apply different storage options to the archive data (compression/not, different indexes, ... depending on expected use cases) without more manaully setting up partitioning based on the deleted/not flag. It can make some query times less efficient (you need to union two tables to get the latest version of things including deleted ones, etc.) but they make other things easier (especially with the syntactic sugar like AS AT SYSTEM_TIME <when> and so forth) and yet more things are rendered possible (if inefficient) where they were not before.
> I tend to prefer a CDC stream into a separate historical system of record.
This is similar, though with system versioned tables you are pretty much always keeping the history/audit in the same DB.
---
FWIW: we create systems for highly regulated finance companies where really deleting things is often verboten, until it isn't and then you have the other extreme and need to absolutely purge information, so these things are often on my mind.
