Content Delivery Platform

I've been researching what platform to use to serve video files.  I came across this post.  I, like many others, would like to host videos on the most cost effect basis since I do not have the support of a revenue stream.  While the post was helpful, it is somewhat dated, I think.  I'm looking for feedback on the following scenario:

The idea about serving videos from a hosting service is interesting because I can write a front end that would allow me to update the necessary xml files to serve the videos.  My obvious concern is what would happen with throughput and performance when the traffic increases (hopefully)?  The service I'm interested in offers CloudFlare as a free add-on.  CloudFlare professes to be a CDN that improves the performance of a web site.  On the surface, this looks like an attractive option.  Does anyone have experience with CloudFlare, or, this type of hosting situation?  Any feedback would be greatly appreciated.