Michael,

Dynamic compilation has nothing to do with it.  It still gets compiled into a DLL, but it is not the source that you compile (dynamically or beforehand) as a module developer that is the problem.

If your IWEB service used a commercial third party component then it would probably come as a compiled DLL and you would include it in your package.
If someone else creates a module that uses the same third party component but does it a year later with a newer version then they sell it and it installs over the top of your older third party component then it could cause your service to stop working.

It's especially bad if someone installs the component with the newer version first, and then comes back and installs your old module which puts an old version of the third party component in the bin and will cause the newer module to stop working since it was compiled with a reference to the newer version that is no longer there.

Maybe what you are saying is that if everyone stops using compiled 3rd party components and only create modules from source that only uses their own unique namespace that the problem would go away.  Well, that would be true, but then we would be moving backwards about 20 years in the development of modular reusable components.

Then again, maybe you are saying that if everyone went to using a Service Oriented Architecture (SOA) we could all live happily ever after.  That's a nice vision, but nowhere near a reality.

Well actually IWeb is a 3rd part component. It is meant to be used just like you would say a datagrid. My point is that it is not a compiled .dll so there is no .dll hell when it is constantly overwritten by multiple installs by other modules that use it.