Nothing is 'wrong' with gutta percha, once it is in place. If it is used properly it is an excellant material.
So is gold foil a good material. But we don't see much of it used any more.
Compound impressions are extremely accurate. Silicone, rubber and hydocolloid have replaced it because of they are so much easier to use.
Now that we have a simple way of accurate placement of cement, gutta percha is no longer needed to push it into place.
Since the gutta perch does not seal a canal, and lack of gutta percha doesn't seem to hurt, it's just superfluous to have gutta percha in the canal.
Think of it this way. Gutta percha is nothing other than a disposable flexible condensing instrument that is used to push the cement into the nooks and crannies of the canal system and is simply left in place because it's too inconvenient to remove.
If you had to make a choice between gutta percha with no cement or cement with no gutta percha, most of us would opt for cement, based on the simple observation that gutta percha is a very poor sealer, no matter how molten it is when inserted. In fact in the April 2005 Journal of Endodontics shows this to be true.
In addition it presents problems in preparation, mainly that the canal has to be made big enough so that when the condensing instruments are introduced and pressure applied that the pressure goes to the gutta percha and not the side walls of the canals, which can cause split roots.
If you have any doubts about this, observe the money being spent and the emphasis placed on preparation technique.
If warm gutta percha is used, the canal must be round, wherever apical pressure is to be applied. If the canal is ovoid then the largest instrument that can be used is the diameter of the minor diameter of the oval and when apical pressure is applied it simply punches holes in the gutta percha and very little apical pressure is produced.