its only for foreseen circumstances they could have avoided....... it's so they don't just cancel a flight because a planes needed for a more profitable one etc...Regulation for certain industries is important but it needs to be proportionate, which 1100% compensation is not. Your post reads like you assume this is money that was magically passing from airlines to consumers. In reality it was impacting the cost to airlines of operating a flight and thus driving up the ticket price.
also it's not 2hour flight, its + hours at the airport and likely hours travelling to an airport.
you think everyone lives next to london or what?