Ryan,
Yes it is that big of a problem.
It seems to be wide spread with the worst I've seen being under a computer room floor where two were daisy chained into a third, this third one daisey chained with a forth one into a fifth which finally went into the wall.
Lastly, the wiring and the standard they are built to are for small amperage loads connected to each receptacle. Daisy chaining them concentrates the loading to one receptacle which is not designed for the concentrated load. The device as a whole is often protected against over current; but each receptacle is not, being considered a tap.
We have had reports of fires with these of the surge protector type when daisy chained, though I do not know the details.
Shane
