
Be aware that some airlines continue to publish information and conditions that do not comply with European legislation. This practice appears to have the purpose of misleading passengers into thinking they have fewer rights than the law provides.
Cancelled Flights Become 'Rescheduled'
Conditions of Carriage Limit Liability
Misleading Statements
Difficult Presentation of Information
Partial Information
If a flight time is significantly altered within fourteen days of travel then the carrier must pay compensation. Calling a cancelled flight rescheduled is irrelevant as far as the regulations are concerned.
Irrelevant, and probably illegal if intended to mislead the customer. Conditions of Carriage cannot override legal obligations. It doesn’t matter whether you agreed to accept them or not.
The following text was taken from the Flybe website on 7th February 2006. It forms part of their "Passenger Charter".

The statement marked (ii) above is contrary to European law.
Whether or not the delay is Flybe's "fault" is irrelevant. European legislation states clearly that assistance and accommodation shall be provided "free of charge".
Customers will expect an airline to comply with relevant legislation and to fairly advise them of their rights. If a retailer made a similar statement denying a customer his rights, the retailer would be committing a criminal offence.
Consider the presentation of the regulations below from Air Berlin (taken from their website on 7th February 2006):

That's 912 words without formatting; almost impossible for most of us to read. The statements made by Air Berlin are correct, but the presentation could hardly be more difficult.
From another low cost carrier, Wizzair (website 7th February 2006):

Whilst these conditions go some way toward complying with the regulations, they omit the requirement to offer hotel accommodation if appropriate, and the requirement to always offer two free phone calls, faxes or emails.
The statement regarding "force majeure" is incorrect and does not comply with the regulations.
We publish the information above in order to bring issues to the attention of consumers, and to encourage companies to improve their public communications. If the above issues have been resolved and consumer information is now properly and fairly represented, please contact us and we will review the situation accordingly.