TCAS_Alert - A personal grudge against the airline is it? Flybe (not Maybe - thats a bit old now and outdated) actually adhere far better than its competitors. I would suggest you have never had justified reason to claim EU legislation otherwise you would have had the Eur250 in your back pocket.
Flybe, for as long as I can recall, have always acted in accordance with EU261 legislation and actually have a very good relationship with the CAA - who oversee adherance to the legislation.
One would suggest that on occasions EU261 claims are turned down because, to put it simply, the passenger is not entitled to it. Flybe are not a charity case and will not cough up money without there being any need to.
From what I understand, the 60:60 is a way of telling passengers that their time is precious and that the airline gets that. No flight will intentionally be delayed without good reason, but if it is you will get something in return. With prices dropping I actually foresee this being a very nice deal for those cheapo tickets. Pay £39 for a one way flight and if its an hour late you may get nearly double your price back - as well as get to your destination.
It certainly is a different way to look at customer service and I know of few airlines that have a similar policy. The only comparible mode of transport is the train where you get your ticket price back if the train is 1/2 (?) or an hour late.