At that scale, it might make Cloudflare customers reconsider their affiliations. It might not be as terrible.
By affecting only Spain, the impact is too small for most websites to care.
If they compelled Cloudflare to do so, what makes you think they couldn't compel whatever provider those customers then switch to?
Yes, trusting Cloudflare to be the arbiter of the internet will work out great.
Just as trying to make social media be the arbiter of speech...
What other provider than Cloudflare is out there that offers the things Cloudflare does? Why are people not already switching to them if they are available?