Whether this makes them reasonable, time will tell. Full marks to Cloudflare for so eloquently addressing this and covering themselves with as much grace as they could muster. If one reads between the lines, censorship is coming. This isn't different from what jgrahamc said a few months back in the news [1].
Signals a new era for Cloudflare, going from protector to arbitrator [2], for better or for worse.
[0] for instance, it was and still is a crime to be a minority in some countries.
[1] https://news.ycombinator.com/item?id=19774347
[2] Not an expert, but it'd be nice if they allowed 30 to 90 day time period before termination, rather than doing it overnight?