What if I don't want/can't make the other flight? If I book a hotel for the 20th, and they overbooked and can only give me a room on the 25th, they don't get to keep my money even if I don't want the 25th.
Before, I think it was a matter where once the airlines had your cash, they were loathe to give it back.
This really needs to be considered on its own merits. And, in my view, it still happens to warrant a refund, when asked, when the delay is significant.
IDK, they both suck.
Conversely, with a hotel, if they overbooked and I cannot stay there, there are usually quite a few locations nearby where I can get a room for a night. I've had this happen a few times and it's never been more than a minor inconvenience.