As mentioned in other threads, I'd say this is still problematic because refunding isn't always the preferred outcome. Re-booking would be better in lots of scenarios(like you have to be someplace, even if a day late, or you already paid for accommodations that won't let you cancel), but if you hadn't even been charged, would the airline have any obligations to re-book you to your destination at the same price?
I'd say low cost flights/seat would get much more hazardous business for travelers, not knowing till last minute if airline cancels or not, with chances barely 50:50.
I too would like to see an airline burn (more like pay up properly & help fixing their/airport shit) but we have to be careful and set incentives so they are not easily gamed on one side, and won't bankrupt airlines ie due to some heavy storms on the other.
