On a certain level, stuff happens, and I'm not convinced regulation here in Canada that would force airlines to pay out $$ above and beyond direct out-of-pocket expenses (like EU) during IRROPS would be to overall benefit. The resultant increased costs would just translate into overall increased fares for all of us. Insurance products purchased by those wanting them (or provided by 3rd parties like credit cards as perks) allow those who need help or financial protection in such instances to receive it.

Of course, however, direct reasonable out-of-pocket expenses caused by IRROPS under the airline's control should be reimbursed, as would normally be standard in any commercial relationship. Where we do need regulation is to stop companies that rely on imbalance of power vs their customers, e.g. unreasonable delays and possibly deliberate war of attrition, to avoid their responsibilities in this regard.

I'd therefore strongly support a "consumer bill of rights", ideally broader than just airlines, that would focus not on arbitrary penalties for service nondelivery, but require a reasonable and timely process for resolution of such claims afterwards. There is no reason this cannot be done in 3-5 days rather than 20 or 40+.