VIE is almost halfway between MUC and BUD (ok its more like 60% - 40%) but if it couldnt make it safely to MUC than its very much possible that it couldnt do VIE either.
Still strange why it landed in BUD though. If they had informed you about the lengthy delay you could have had much fun in BUD [my former home base]
Have no experience on the compensation, sry.