Cloudflare / Matthew Prince begging for the government to take a much broader role in content moderation is an authoritarian position, not a libertarian one. If you use your freedom of association and freedom of speech to harm other people unless it's illegal, you're bad people.
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Matthew Prince claims to believe in less government regulation and more personal responsibility. Meanwhile, he blames his platform being used to harm people on governments not micro-managing it for him.
blog.cloudflare.com/kiwifarms-bloc
It was Cloudflare's choice to harm people this way.
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Cloudflare gets to choose their customers and moderate how their platform is used. They're accountable for it and can be criticized / boycotted thanks to those same rights. Same thing applies to companies at every layer of the internet. No one is obligated to help host anything.
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Legality is not morality. Cloudflare does the absolute bare minimum to comply with the law when it comes to their platform being used for extreme harassment. They go far beyond what they're legally required to do when it comes to deplatforming sex workers. Those are their morals.