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It's a good move for them but it's problematic for anybody who cares about a decentralized Internet.
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My policy has been, I make sure I have an equivalent self hosted solution that I can immediately switch to, before deploying said feature to Cloudflare.

That said I only use cloudflare for piping and none of the compute stuff.

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Indeed, a self-hosted compatible fallback is a great failsafe.
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No, consolidation within the tech industry has never been good for workers or open source development. For someone who considers themselves as part of the open source community I've been extremely disappointed how anti-worker and pro-corporation you come across.

Don't worry you aren't unique in this regard, many other nonworking dev influencers say similar things: never championing for workers but somehow always championing positions that help investors + corporations first and foremost

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