Why should the compensation amount exceed the ticket price? Because the ticket price and the fixed amount of compensation are not related. Just as there is no relationship between the amount of compensation and the additional costs incurred by the PAX when delays occur.
So why does the regulation (1371/2007) on rail fix the compensation as a (relatively small) percentage of the fare?
If you decide to continue your journey as planned or to accept alternative transport to your destination, you may be entitled to compensation of:
25% of the ticket fare, if the train is between 1 and 2 hours late.
50% of the fare, if the train is more than 2 hours late.