A very touching story, Ozstamps, but the question is about what happens when there AREN'T enough seats for everyone on the next available flight... THEN who gets to go?
The compensation BA offered seems reasonable but consider if the hydrolic problem happened on say a 747, BA would have taken care of the full fare and/or elite level passengers, by putting them on the first flights out, and they would have discriminated against the economy and/or non-elite people, by making them wait in the airport, and giving a coupon for the cafeteria... Remember, NOT disclosing that your economy/non-elite ticket comes with LESS rights equals FRAUD to me.
Jim