This may be slightly off-topic, but be gald it wasn't a developing country like the Philippines. Airlines there are liable for only 150 pesos in denied boarding compensation, which is about $4. And if the plane's not full enough, they'll cancel and "combine" people onto a later flight, even if that means 6 hours later or the next day. Getting endorsed to another carrier is like pulling teeth, and your only other option is a refund (after 60-90 days).

So there's no economic deterrent against overbookings or against economic cancellations. Not surprisingly, some airlines abuse it. Not the kind of "deregulation" we need elsewhere, IMO.