The issue is that your “compared to other things” essentially requires CloudFlare to be incompetent which, sure, that could be a thing. But then there are bigger problems.

None of your concerns hold up to scrutiny. Using lava lamps instead of better sources of entropy implies incompetence. CloudFlare is also not so resource limited that they can’t dump the lava lamp entropy in with the rest of their entropy sources. Or else, again, incompetence.