Seems like Cloudflare wants to regulate the internet.. they should not have that power.
Disagree. Not everybody wants their sites scraped and their content used to train a model that they'll never see a penny from. Cloudflare is the only party who wants to build a system where both the models and individual sites have their interests respected.
Are you sure that CF can stop AI bots?
Do you have a better alternative?
Have you looked into open-source alternatives? I'm assuming that it's a pressing problem for you, and you have already explored alternatives.
I have, sadly they are basically worthless and often worse then worthless as they negatively impact the site.