I'd like to interrupt all the sanctimonious blathering in this thread to note that Cloudflare domain registration terms and conditions are almost a verbatim copy of Google's, and includes the same unilateral cancellation clause for phishing.
Cloudflare: "Cloudflare and Registry Operator may deny, cancel, suspend, transfer, redirect or modify the Registrar Services or a Registration, or place any domain name(s) on lock, hold or similar status, as either deems necessary, in the unlimited and sole discretion of either Cloudflare ... for distributing malware, abusively operating botnets, phishing, piracy, trademark or copyright infringement, fraudulent or deceptive practices, counterfeiting or otherwise engaging in activity contrary to applicable law."
Google: "We may in our sole discretion, deny, suspend or cancel any registration or transaction, or place any domain name(s) on registry lock, hold or similar status if ... engaging in spam, phishing, or other deceptive practices."
I think the primary issue with Google Domains here is not that they have these kinds of terms, but that they enforced them in a particularly incompetent way. The original report of the phishing site was over a week old and had already been resolved, when google shut down the domain. Hopefully the people at Cloudflare are a bit better at their jobs.
Oh, I don't know that we have enough unbiased information to conclude what you concluded. One of the first comments posted in this thread today was "Is it related to the countless phishing pages hosted on your service?" from which we can deduce that the phishing problem on Gitbook is well-known to random members of the public.
Cloudflare: "Cloudflare and Registry Operator may deny, cancel, suspend, transfer, redirect or modify the Registrar Services or a Registration, or place any domain name(s) on lock, hold or similar status, as either deems necessary, in the unlimited and sole discretion of either Cloudflare ... for distributing malware, abusively operating botnets, phishing, piracy, trademark or copyright infringement, fraudulent or deceptive practices, counterfeiting or otherwise engaging in activity contrary to applicable law."
Google: "We may in our sole discretion, deny, suspend or cancel any registration or transaction, or place any domain name(s) on registry lock, hold or similar status if ... engaging in spam, phishing, or other deceptive practices."