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I am no expert, so grains of salt and such. But my assumption is that it's a marketing expense. They get a lot of people familiar with cloud flare services and some of them later need a professional level solution. So people use what they are already familiar with. This is the same reason why tech companies provide hardware/software to schools for cheap/free.
Developers, like me, use the free tier for staging and testing and then when the project is deployed to production, I setup a paid account for the client.
I also use their domain registrar and sometimes buy CDN bandwidth in complex setups.