I see 2 nasties here:

On one hand, this is a clear overreach of the courts: They gave a private party the right to censor random sources without judicial oversight.

On the other hand, the courts still need to judicate in their respective countries. If cloudflare says: We're in another country so the courts cant make us block illegal things, well, the courts have to overblock or they lose the ability to enforce their decisions.

Some decisions do not need to be possible. No amount of court judgements will make pigs fly. Perhaps it is about time we took the decisions of what may or may not be on the internet outside the reach of idiots.

We. You, me, readers here, are the people who are in charge of design decisions for future systems and networks. When designing them, favor reliability, resilience, decentralization! Make it impossible to take things down! Let them pass useless judgements and make toothless rules. Design so that those judgements and rules apply no more to the internet of tomorrow than they do to the sun, moon, and stars.