No one has lost domain hosting, that I'm aware of. But at least one person got pepper-sprayed, more have been beaten in the street and others have had people going after their jobs based on mistaken identity.
This doesn't address the fundamental point: that if you declare a willingness to censor anyone, then you'll immediately have a whole lot of people trying to convince you that their personal enemies fall in the censor-worthy category. I don't trust domain registrars or CDNs to be the final arbiters of Who Really Is a Nazi.
How is that what happened, though? This is explicitly an internal decision. CloudFlare made it on its own, without input. They didn't "declare" themselves "willing" to do anything.
Isn't their behavior exactly the solution to the problem you're straw-manning? You allow individuals in the private sector to make their own moral decisions about hosting. Problem solved.
I mean, I'll just say it again: if you can't trust a hosting/distribution agent to make their own decision about white power racism, then you live in a bleak world without any effective morality. That might work within your safe spaces on the internet, but those of us in the real world need to trust each other to get stuff done.
This doesn't address the fundamental point: that if you declare a willingness to censor anyone, then you'll immediately have a whole lot of people trying to convince you that their personal enemies fall in the censor-worthy category. I don't trust domain registrars or CDNs to be the final arbiters of Who Really Is a Nazi.