What happens is that some places (not many I'd hope) are compounding
products that have been removed from sale in USA.

Here is an example:
http://www.fda.gov/cder/warn/2004/Hopewell%20WL.pdf
Dromperidone used to be commonly used in dental anesthesia..and many young people died, getting wisdom tooth extractions. As a matter of fact, I made sure
the oral surgeon who did my son, did not use that! He was amazed I even asked! It is not a typical question.
Polidocanol can cause strokes and embolisms...
http://en.wikipedia.org/wiki/Polidocanol

Also we just had an incident on NeuroTalk...
a poster using dexamethasone nasal spray compounded. This steroid was also
taken off the market because systemic absorption for it is very high. Newer
steroids are less so and now used here. Our poster had extreme side effects, and was complicated by an error made at the compounding pharmacy in dose and dispensed as such. So it was a double negative for her.

The recent midwest compounding place (I forget the name) was making chemo agents IV with no drug in them. Collecting the $$ as fraud. That one made national TV.

I agree that some compounding freedom is necessary...but you know people abuse it. Just like they abuse the edit function here! Some doctors are good and keep up, and others may be a little nuts, and expose their patients to
weird harmful things. So compounding may be a loose canon of sorts.

Many regular pharmacies now do make transdermal gels, etc. which are the heart of compounding places. It is only the really rare oddball things that seem to arouse concern and are probably attracting the attention now.

Also the pharma lobbies are very powerful... don't forget about THEM.
So I think it is a multipronged issue.