This regulation is not meant to make passengers rich, it is meant to punish airlines so that they will go to great lengths to prevent delays and cancellations. It is therefore imperative that those who are entitled to compensation also claim this compensation. If you don't want to go to the court yourself there are organizations who will gladly do this for you (and keep 20% as thanks).

I do agree that BA (in this particular circumstance) probably behaved ok but that is not the point. It is about preventing a slippery slope. It is more aimed at operators like TUI and ThomsonFly perhaps but still. It is there to keep the airlines honest and on their toes.