My understanding was that cloudflare was being blocked by the same IP blocking list as everything else. And while that system went through courts, the list didn't.

There are also direct actions against cloudflare, but that's not what's taking everything down, is it?

Did I misunderstand something?

The sites are directed to be blocked by IP and DNS, this is the list I suppose you're talking about, I'm not sure of any specific "system vs list" distinction. Since some of the sites are behind Cloudflare, some of the IPs are IPs used by Cloudflare for any customer, not just the streams, so then Cloudflare gets blocked wholesale, the collateral damage that we get to joyfully experience every game.

Remains to be seen if the block will remain in place or not, you could argue it goes against some other laws, but it has to be argued legally, just like how the block initially happened because La Liga went through the courts. So far us developers or people who visit more American websites tend to be hit the worst, since they're talking about "protecting" other matches too, in other sports, I'm guessing it'll get worse before it gets better.