A general question came up today when browsing the net about EU261 delays..
pretty much all the "we take care of it" sites about flight compensation state: more than 3h delay for a type 3 flight = cancellation and therefore you are entitled the 600 euros.
flyertalk wiki is the only source I could find that says .. type 3 flights get 600 after 4h and 50% less between 3 and 4h.
now I looked into the actual EU261 pdf.. and to me it sounds kinda weird.

it says - like all the paid flightright sites say - a delay of more than 3h is treated like a cancellation and therefore you are entitled to 600euro.
BUT if the airline offers an alternative flight that brings you to your destination THEN they can cut the compensation by 50% (Art. 7/2)

What do i understand wrong?