The flight cancellation you are complaining about originated and ended within the EU. The part of the rule that you are quoting, by my reading, appears to be a different scenario, which effectively extends EU protections to those travelling outside the EU on EU carriers. I am arguing that the flight that was cancelled orginated in the EU. You had no complaint about the Houston-London flight. It depends on how much stomach you have for a fight, but I firmly believe you may have a legitimate complaint.
Did you cash or accept the $100 btw? It is possible you accepted this in full and final settlement, in which case you are out of luck.
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