I notice that with compound words broken across lines protrusion does 
not get applied. This looks pretty rough when there are normal 
hyphenated words in the same paragraph.

WE (exaggerated, but demonstrates the point):

    \setuppapersize    [monarch]
    \definefontfeature [default] [protrusion=quality]
    \setupalign        [hanging]
    \setuptolerance    [horizontal,strict]
    \setuphyphenmark   [sign=small]
    \showframe         [text] [text]
    \starttext
    \dorecurse{21}{Multisyllabic||words||separated||by||hyphens. }
    \stoptext

Is this expected behavior? Can it be changed?
-- 
Rik Kabel