CrackerJack wrote:
What exactly is the problem if too much cpu compound is put on the
core and it gets squashed out onto the surrounding area?

Apart from looking messy, is there any real problem with this?

I propose this answer:

1) If the compound is not too viscous, and the heatsink is clamped on
with some force, and you apply enough compound, the thickness of the
layer of compound does not depend on the amount applied, which is to say
that the excess gets squeezed out.

2) Thermal compounds are not electrically conductive.

3) Some thermal compounds (notably those containing silver compounds)
have capacitative properties that can be problemmatic if compound gets
between the chip's leads.

4) If you use a compound that doesn't have the problemmatic capacitative
properties and is not too viscous, in general it won't hurt to use too much.