Airlines like Titan may do quite well out of this then.
I think if it's justified if a passenger has lost out because of a delay, loss of earnings through not being able to work, additional costs of transport/parking etc when returning.
If it's just your average passenger who arrived a few hours late with absolutely no impact on their life then it shouldn't be allowed. Ticket prices will go up and this needs to clearly be shown before the claim culture on this starts.
Next it will be automatic phonecalls like PPI... "Have you ever been on a delayed flight?"