If you feel it is excessive, then you are free to choose not to claim it should you get delayed - or even ask in writing that it give you a lower amount instead

EC261 is a very good thing imo and discourages airlines from engaging in activities that they are happy to do where it doesn't apply

Flight has been cancelled - you have been rebooked on tomorrow's flight - pay for your own hotel and food
You have been downgraded - have a tiny refund for it


It would be good if there were equivalent protections elsewhere

4 hours is the minimum delay period that attracts EUR600 and only applies to journeys 3501km and further - for a short flight of up to 1500km, the compensation is only EUR250