No, they don't, please read this before making unresearched guesses ( note: I had the same reaction at first a couple of years ago).
They forward every info that is required for cdn's to function, that's why no other cdn's are complaining.
See the statement of the CEO:
https://news.ycombinator.com/item?id=19828317
Tldr:
> We publish the geolocation information of the IPs that we query from. That allows any network with less density than we have to properly return DNS-targeted results. For a relatively small operator like archive.is, there would be no loss in geo load balancing fidelity relying on the location of the Cloudflare PoP in lieu of EDNS IP subnets.
We are working with the small number of networks with a higher network/ISP density than Cloudflare (e.g., Netflix, Facebook, Google/YouTube) to come up with an EDNS IP Subnet alternative that gets them the information they need for geolocation targeting without risking user privacy and security.
