There's ongoing work to update the regulations to remove a lot of the loopholes. For example, some airlines like to try to claim that pretty much any delay/cancellation is caused by "extraordinary circumstances", even though court decisions have limited when that excuse can be used.
The efforts to clearly define some of the vague parts of EU261 have been held up by intense lobbying from the airline industry.
One important addition that has been suggested would be to force airlines to publish the cause of disruptions, so that they can't lie about it later when passengers are trying to claim compensation.
Doesn't seem to stop Air France.