That's a bit harsh. I think someone else has mentioned they can't just give out refunds to all cancelled flights immediately. No one has that much operational cash and so many airlines would go bust. The law is actually a lot better for the consumer than I would have expected in this case. I would have hoped the default would be getting a voucher for future travel (you were going to fly there anyway) and only as a last resort you get a refund. Sadly this doesn't seem to be the case.
Interestingly we were supposed to be flying to New York next week. Virgin originally gave os vouchers and I thought "fine, we can go when this all dies down" Last week, without any prompting from us, they refunded us the entire cost.