A 'counterpoint', such as it is. What makes you think that isn't happening to any 3rd party host you can name? Why single out Cloudflare as adding risk to sites that are hosted on AWS already?
The risk here is real, but it's much more pervasive than one data handler.
You seem to mis-understand how cloudflare works. They allow an insecure host to pose as a secure one and the traffic between cloudflare and the insecure host is not encrypted.
That problem would not exist on 'any 3rd party host'.
CF is the same as any other CDN with TLS termination. Every host that provides a load balancer, or a server, or some other internal network connection like a VPN, can be compromised. Cloudflare is nothing special in this regard.
The risk here is real, but it's much more pervasive than one data handler.