I don't for a second disagree that some airlines were taking the mick so It is good that in cases where they clearly are to blame (over selling, delays due to technical faults for example) then passengers are protected (although giving someone who paid €400 for a ticket only €250 while also giving someone who paid €30 the same amount is clearly unfair). In cases of weather I honestly don't see why an airline should pay out a penny as they are in no way to blame. Passengers who choose to fly in the winter should know that things like fog, snow, ice, severe winds and storms are much more likely to delay flights, so why they should be entitled to the same compensation as someone who has been booted off because an airline greedily sold their seat twice is beyond me.
I think it should also be made clear that they are not entitled to be given the compensation in person, on demand. It has to be claimed retrospectively. I've seen plenty of cases of airport staff getting shouted at as passengers demand to be given money on the spot and refusing to take a refreshment voucher. It needs to be made clear that all they are entitled to at the time is that voucher and nothing else. These DM articles and many like it do nothing but misinform people about their rights to entitlement, which is more damaging than anything.