Sure. TL;DR: I think it's mostly useless. From an engineering perspective this is a creative way to circumvent management's requirements ("our encryption keys must be kept on premises"), but otherwise I don't see the value.

Let's first see what the problem is with the old method, storing the private key on the Cloudflare server:

1. Cloudflare can read all traffic.

2. Cloudflare can read traffic they can intercept, even if it's not directed towards their server. Think public WiFi access points.

3. Anyone able to break into Cloudflare, physically or technically (or legally, hello NSA!), has the same capabilities.

Number two is a bit far-fetched without taking number 3 into account, except that there might be national security letters to obtain the private key, after which government agencies can use their own intercepts. Still slightly far-fetched, but a plausible concern if you're the bank that the next Edward Snowden just happened to use (Lavabit's private key needed to be handed over, disregarding all other customers' privacy).

Now we implement this new system, where you can only obtain the decryption for the encrypted session key (as sent by the client, e.g. a browser).

1. Cloudflare can still read all traffic.

2. They can no longer passively read any traffic, or hand over private keys to law enforcement. However, the encrypted session keys could still be queried at the keyserver. The keyserver would need to actively maintain a blacklist of session keys that are not in use at Cloudflare, e.g. by having webservers send them as they were used, and raise alarm flags if a false one comes up. But I'd need to work out this attack scenario further to be sure there is no loophole that could make it look like Cloudflare traffic even if it's direct (but intercepted by whomever) traffic. I think something like that might be possible, but I'd need to work it out to be sure.

3. Anyone hacking Cloudflare is now limited in the same way Cloudflare is (so the same as point number two).

So far the security concerns. Now as for speed and DDoS mitigation...

- Cloudflare now needs to query an external server (if it's in their datacenter, it can be pretty much considered under their control) for every https connection. Assuming there is a direct peering connection to a datacenter next-door, this would only be a couple of milliseconds in network latency, but so is DNS and building a TCP connection and fetching a page... it all adds up and in the end you notice that pages need to load, even if only for a sec.

- The SSL termination point is now nearer to the client, as Cloudflare has datacenters all around the world. You could in theory build the keyservers next to many of them, but then you're rolling a CDN for a CDN (a delivery network of content (keys) for a content delivery network (cloudflare)). Perhaps not a bad idea, but it just sounds a bit silly. All things considered, at best the connection gets only a tiny bit slower.

- Cloudflare is still useful for mitigating attacks, just like with normal http traffic. I mean, they can read the data, so it's more or less the same as with unencrypted http. The difference is the keyserver: they might run over capacity. Luckily you can now solve that problem by throwing money at it (you can deploy more keyservers, Cloudflare already has enough front-end servers to handle the requests). So it's now a money issue, not a technical one, which is how you want things to be.

- Session reuse makes this somewhat less of a pain, as the keyserver need not be queried for repeated https connections. We'd need to see numbers to know how much of a win this is, though. In any case, it's never faster than not having the keyserver.

So in this area it's still a win, but so was handing over your keys. Having keyservers makes it slightly less of a win.

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In conclusion, you have three options:

- Don't use Cloudflare. Fastest website, but risk of DDoS.

- Old-style Cloudflare https setup: handing over your keys. DDoS risk mitigated.

- New technique: providing keyservers. Slightly slower than the old style, but with a tiny security advantage that might help with either management or rare kinds of high-profile attacks.

Disclaimer: I'm not a Cloudflare tech, I'm a software engineering and information security student (and a major nerd in general, I might add). I might be missing something, but many other comments seem to be saying similar things.