Having been in the military, and actually involved in real security duty, I can assure you that almost all of the TSA restrictions are theatrics to show they are "doing something", and counter-productive at worst, including the liquid restrictions.
Small volumes of liquids can't cause catastrophic damage, outside of a movie or TV show. While there are liquid explosives, they are neither easily obtainable, or easily made outside a laboratory.
But... let's say this magic substance existed, and that it was only the fact that you can't bring more than a quarter ounce of liquids on board that keep a terrorist from manufacturing them in flight. The TSA regulations are -still- stupid because nothing prevents several people from bring a quarter ounce each and combining them. Or one person bringing a quarter ounce in a shampoo bottle, a quarter ounce of "medicine", a quarter ounce of "toothpaste", etc...