> ever going to be realistic for a company to be held responsible for everything every customer puts up on the web

It's good that this is not what people expect from them then. We're still taking about most egregious examples discussed for years with documented lethal real world impact. Just like they already say in their TOS they would act on.

The problem with your argument is that CloudFlare didn’t act to benefit ordinary citizens, it acted to protect its shareholders from a material risk to the company. It’s always been the case that businesses have to choose who they do business with and that clients can take their business elsewhere if they don’t like how a company behaves, very much including demanding that other clients are dropped.

Companies started acting like they shouldn’t need to know what their clients are doing only 20 years ago and it’s given us widespread counterfeiting, scam robocalls and DDoS attacks. Of course they want to continue doing it, because they’re making money hand over fist. Doesn’t mean we should let them.

"organized body of people can start a similar pressure campaign against Cloudflare or Facebook or Reddit"

Cancel culture is when people assemble and then say things in support of a cause I disagree with- in particular, it's really bad when they petition a company or government to do something I think is wrong. It's more and more common, and it's a real threat to free speech. I think the government should ban it.