Certain EU airlines, particularly Lufthansa and TAP, don't pay up very easily unless you hold status.

Doesn't reflect well on the EU if they let companies get away with that. It's a law, and systematically ignoring them should anger the hell out of the EU. Since these are big corps based in Europe, perhaps they get a more lax treatment.

They count on people not having the energy to push through to get their money, but in my experience they pay as soon as they realise you know your rights and is dedicated enough. But it’s the main reason I never fly Lufthansa any more when I can avoid it.

Individual countries are usually left to enforce these laws on their own. Many EU countries are already subsidizing their national carriers in one way or another, so they aren't always keen to push passenger rights. For example Germany notably allowed Lufthansa to illegally hold customers' funds for more than a year after cancelling flights during COVID.

Those are passenger rights, a set of rules different from German laws of contract. Also, for cancellations there is no compensation if the flight was cancelled early enough or if the airline can prove exceptional circumstances.

All airlines starting or landing in Germany have to follow those laws. It’s inconsequential whether they are directly codified in German law or not. It’s correct that they aren’t without conditions, but I don’t think anyone think they should be. They have to compensate you if they cancel the flight less than 2 weeks before departure. I’ve gotten €600 twice after different delays or reroutings.

So while you can have opinions about the exact conditions, you can’t argue there are none.