What's the basis for asserting it was lost baggage compensation?
This is similar to how car insurance or home content insurance works. Most people think the value of something for insurance or compensation is the price they paid, which is wrong. The value is the price currently of a comparable item for sale.
If the car you paid $50K for 8 years ago gets stolen, they don't give you $50K for it but instead the price of comparable 8 year old car.
Same thing with home insurance. If someone comes in and steals your MacBook Pro which you paid $5000 for 8 years ago, they don't give you $5000. They find out how much a similar MacBook Pro sells for on ebay, etc and give you that.
The article states the couple was compensated for 25% of the value of the luggage, whereas the passenger's bill of rights seems to say that the airline is liable for the full value of the lost luggage, up to a limit.
Which was submitted in response to your previous comment that The “delay bag” is only paid if it’s delayed. If it’s lost then it’s not paid and then “lost” is paid.
I am not interested in your exposition of how insurance works, which is a distraction from the simpler question of 'lost or delayed'. Out of courtesy, I think you should respond to that other poster's point instead of grinding your axe on mine.
Paying out 25% of the value is not a fair compensation when they're too lazy to retrieve a tracked bag.