Would agree. On this generally. Ill sell/build the service while at the same time being explicit about the tradeoffs, and encourage people to find better alternatives for their needs. As someone who trust no one and runs 99% of things myself.
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Cloudflare is a more than acceptable tradeoff in this case. If it had your PII and other sensitive info, probably not (but you could get a DPA anyway) but it’s a Nostr media hosting service.