"Hellfire: It seems I could claim for both the delay and cancellation and it is 250 Euros for each claim? They also failed to provide food or water (I did ask for some), as on the original flight we boarded at 15:30 and sat on the plain till 18:10 when the flight got cancelled."
No, it does not "seem" that at all. EC 261/2004 provides compensation when you are delayed at your final ticketed destination by at least a specified amount of time. In your case, you arrived at 22:30 when you had been scheduled to arrive at 17:50. That is a delay of 4:40. It entitles you to EUR 250. Not sure how you turn that into anything more.
Bags are irrelevant and not covered by EC 261/2004.