It is unfortunately an extremely powerful platform for quite a lot of things, quite a no-brainer for quite a few topics/challenges to not be a problem in 2026.
But for privacy, it’s not the best indeed…
Unpopular opinion regarding the original question of a website blocking TOR users:
boycott it. Just like opening a website with a paywall and ton of crap on it, prefer giving a shot to another website (if you can find some alternative content/service elsewhere of course).
While this is good in theory, there are limitations. For example a protest organizer who wants to post an ad for a protest on a clear-net website to maximize exposure. If they boycott every website that blocks tor, they limit the success of the event.
—
I don’t recommend datacentre IPs. You can rent cloud phones or PCs that have residential IP addresses. Pay in crypto, remote into the device, use it for whatever you need.
It shouldn’t be my problem as client that website under bots. Just hire moderators or shut down. Fin.
I shouldn’t have problems just because someone too paranoid. But the most HATED webmasters that use not captcha but IP bans. I wish they go to hell.
If you explicitly know residential IP address providers that do not require KYC to pay in cryptocurrencies, publicly inform us. Such knowledge would also be useful for others to self-host Invidious instances, among other related examples.
People are not always interested into paying and maintaining a website for the free while not being paid for it. Cloudflare does it for them, for free.
So yes, it will stay for its ease of use. 
Also, the issue is not bots only but also DDOS, IP protection (of the server), free static hosting with unlimited bandwidth, fast CDN delivery etc etc…, Cloudflare’s solved challenges are not solved with a few moderators.