To a European it is not much different these days from hosting it on Alibaba Cloud or Yandex: you don't want to rely on hostile powers for critical infrastructure.
Sure, maybe the CloudFlare CEO seems like they "do the right thing" and then the administration gets pissed off at something CF related, they lean on the CF board and you've got a new CEO and maybe CF is sold off to "a friend of the show".
Nothing specific to CF here it's just how all US companies need to be viewed.
If 90% of customers are in the US, they're probably going to comply.