Compensation is just adding costs to flights, everyone wants free cash. Don't like it don't book it.
It's nothing to do with free cash. It's giving the airline an incentive to actually provide the service they've committed to (or rather removing the incentive not to). I can guarantee you it's someone's job to decide whether in various scenarios it's better financially to cancel/delay a service (and have to pay compensation) or take the financial hit of running it anyway. Lowering the compensation leans that decision further to the side of cancelling/delaying, which is
not in the interest of the customer, because while that delayed or cancelled flight is just numbers in a bank account to the flight operator, to the customer it's missing Christmas with their family, or their son's graduation, or sealing the deal with a foreign client, or a ruined family holiday etc.
So do we think delays result from incompetence, greed or trying to run the airline on the cheap?
Or just that things sometimes just don't go to plan?
If you hire a private jet you still occasionally get delays.
If you pay as little as you can you're not going get the best service.
It could be various reasons. It could be anything from adverse weather to staff illness, technical problems or just an accountant who decided that because there are only 10 tickets booked it's cheaper to cancel the flight and pay out compensation to those 10 people than actually run the service.
The compensation scheme already has exclusions for "extraordinary circumstances" which are generally outside the airline's control, such as weather, terrorist attacks etc. For the other issues - these are (in most cases) preventable by the airline, and a decision has been made to not put measures in place. If the airline has decided to leave themselves vulnerable to these issues in a race to the bottom then that's a gamble they have made and in some cases it doesn't pay off.
You seem to be yet another member who seems so out of touch that you're suggesting that booking a private jet is a perfectly feasible consideration for the average family holiday. A few minutes research shows that for the same trip (Heathrow to Zagreb and back for a week in the middle of August for a family of 4), BA: £1,200, Private jet £24,000. That's 20x the price. That is in now way affordable for the vast majority of people.
No one is asking for free cash or anything unreasonable. We just want the service we've paid for, and to be compensated if that's not provided.