As you note, unless you negotiate a custom contract, usually the "penalties" are very, very mild. It's effectively the same as there not being a penalty at all. The SLA is just a marketing nice-to-have divorced from the engineering realities
Yup, and given Cloudflare's recent performance, I'd venture that more heavy-handed contracts need to be negotiated with them to drive an improvement in performance, or at the very least a paradigm shift in how they sustain availability to the clients who really care for it.