Jaded, you patently have little or no knowledge of the airline industry, and you seem unwilling to learn. The European legislation that Ryanair (and all other European airlines) are objecting to is very recent, and was framed to counter a perceived practise of airlines overbooking flights without penalty. It was not intended to cater for the current regulator-imposed stoppage, for which no insurance cover is available. Even under this ill-framed legislation, there is NO right of compensation, simply a right of recompense for 'reasonable' expenditure. Leaving Ryanair out of the equation for the moment (and Frenchie's Indie link gives the story very well), all the major airlines have done their very best to comply with the legislation - and certainly our customers are, in the vast majority, very thankful for that. However, that doesn't alter the fact that the legislation is unfair, and has no parallel for any other industry.
Further, your contention that the airlines would have continued flying regardless shows both an ignorance of the safety culture if the industry, and a wilfull disregard of its safety record. If you want to tell us that the industry is casual about safety, show me your evidence.
There are many here who wish to use this episode to soapbox their distaste for an industry which they see as incompatible with their environmental views. That's fair enough, but please try and couch your arguments in fact, not prejudice and assumption.