It's because Cloudflare actively protects these bad actors. They host DNS, they host proxy services, and they hide identifying information from WHOIS. They say they won't listen to anything short of a court order, so now we have to convene juries and get indictments to get Cloudflare to do anything at all.
Cloudflare is playing a big game.
Comparing Cloudflare protecting bad actors to the water company providing water to KKK members is completely disingenuous, but you know that, obviously. You should pick better examples.
Does the KKK use water cannons to hose people down? No. Any benefit KKK members derive from having running water is incidental to their KKK activities. Likewise if some terrorist is watching Netflix to unwind it's not furthering their terrorist activities specifically.
On the other hand, multiple groups of people have targeted Netflix for producing or promoting content that those people find offensive, which is a different situation from providing content.
When white supremacist organizations meet in conference halls at hotels people absolutely raise a stink and complain that the hotels should cancel the conferences and ban them from attendance. Cloudflare is actively and directly enabling the specific activity that people find detestable, same as hotels hosting white supremacists.
Cloudflare is playing a big game.
Comparing Cloudflare protecting bad actors to the water company providing water to KKK members is completely disingenuous, but you know that, obviously. You should pick better examples.