Ignoring the Compound Bow thing...
Composite bow makes a bow smaller, but the pull power is required still the same. Modern compound, which uses system of pulleys was invented about 40 years ago.
Never used in a fight. Also they are fragile and repairs need good equipped workshop. You would not get these to any adventure expedition.
Compound Bows in 3.5 and Pathfinder have a damage bonus based on strength to a limit set by the bow.
Rule sounds good, but do not mix compound and composite terms.
