It works. End of thoughts.
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I don't do it, but for big instances like lemmy.world I'm sure it saves them a lot of money and improves performance drastically.
Serving data from multiple locations with the current lemmy implementation is really hard, and bandwidth is really expensive. Even with an enterprise account, Cloudflare saves us a ton of money at work.
Like sure, you can self host all of that but it's usually quite expensive.
Just reducing the accesses to the pict-rs S3 bucket saves a ton of money, even if you end up using CloudFront which is also an AWS product.
Why would you put it behind cdn? Set up nginx caching and you'll be fine.