Their design has the benefit over yours that people don't need to send data to peers in order to timelock some data. The timelock only needs to be sent to the peers for decryption.
I don't think the 'proxy' approach is timelock encryption, because it doesn't actually rely on the passage of time. Cloudflare is relying on a network of trusted agents that 'tick' at a predictable rate.
I think I wouldn't want to rely on this network of trusted agents to preserve a long-lived secret. There's no guarantee that the network will still exist when it's time to reveal thw secret.
Is there a way to do timelock encryption that doesn't involve reliance on a third-party, and that really depends on the actual time, rather than on a proxy for time? I cn't see it, but I'm not very clever.
So, in a sense, in my opinion, if you want to encrypt a message and send it to someone and make it timelocked without a third-party, you might as well just keep the message secret until the desired amount of time has passed and just give it to him.
Happy to hear your thoughts on this.