EU regulations go even further than that. Even if the flight isn't cancelled, delays can mean that they need to provide a replacement flight and still must compensate you. I was once denied boarding and they comped me an overnight stay at a hotel with breakfast, I was reimbursed for my flight, and they gave me the next morning flight to my destination.
The compensation is set in law, and is usually higher than the ticket price.
Airlines quickly got rid of cancellations...