Cloudflare says the decision was "Dangerous and Uncomfortable". but also states that the reason that they dropped Kiwifarms was: "We believe there is an unprecedented emergency and immediate threat to human life."
Cloudflare's Full Statement:
https://blog.cloudflare.com/kiwifarms-blocked/
Cloudflare originally denied requests to take down Kiwifarms
Kiwifarms later taken down due to a pressure campaign and Says kiwifarm users may lash out harder because of the isolation
(archive link)
https://www.washingtonpost.com/technology/2022/09/03/cloudflare-drops-kiwifarms/
(WP link)
Edit: link contribution by Krell:
I'd say good riddance to kiwifarms but cloudflare presents a valid point: just as Stormer and 8chan had done, they will just find another ISP (interent service provider) to come back online with; they had previously been on a russian domain as well.
My take is that cloudflare had no choice despite their misgivings but if the legal system worked faster and bagged Kiwifarms users or at least the founder on the grounds of threatening human life (they have a track record of causing 3 seperate suicide incidents) before cutting them off.
Edit: Statement From the Campaign to remove Kiwifarms.
Edit2: campaign website.