I totally agree with point number 2. Even point number 1 is reasonable. But there are many CDNs you could use, perhaps smaller ones, perhaps some that do not offer their services to streaming websites, which is arguably the reason for the blocking.

Ultimately point number 3 is a prediction. I could see that happening, but I am not convinced it's set in stone that the blocking would just increase. And even if that happens, and even bigger ranges are blocked, and even more stuff breaks, perhaps more people will start to notice and put an end to this, to CloudFlare's delight.