So the stable state here is all humans eventually being locked out? (Bots are getting better every day; I doubt the same is true for all humans, including those with weird browsers or networks unwilling to install some dystopian Cloudflare "Internet passport".)
But hey, at least some bots are also not making it past Cloudflare!
Or else a player too big to be blocked moves into the space with a service that provides some/all of the privacy benefits, but declines to offer the other undesirable aspects of VPN (e.g. location shifting to circumvent local restrictions)
To the contrary, people running botnets or AI scrapers are likely going out of their way to mimic ordinary web traffic from consumer devices. Ultimately, these measures will only affect users who are trying to protect their privacy and security, and will be ineffective at stopping bots.
That's... exactly expected? It's a cat and mouse game. People running botnets or AI scrapers aren't diligently setting the evil bit on their packets.