I think the problem people run into is running the compressor on the microphone where it's in a constant state of gain reduction. Then as stated by other posters the operator starts raising the channel output to get the vocals back in front of the mix or raising the make up gain on the compressor. This can be made even worse if the threshold is set so low that the on stage volume is coupled into the vocal mic contributing to some of the compression. When the band stops and the threshold is no longer reached in effect the gain of the mic has been raised by so many db. It's not a problem with the compressor, it's a problem with the usage.
I typically run my mic compressors where they're kicking about 25-50% of the time, basically on peaks. I don't like the 'squashed' lack of dynamics sound