I've frequently seen handgun rounds over-penetrate, even hollowpoints - and George is absolutely right that it's a serious issue. You'd be astonished at how many LE agencies have quietly settled lawsuits out of court, and paid out very large sums in damages, to avoid the negative publicity of a guaranteed loss before a jury.
In my (extensive) firsthand experience of gunfights, I've seen overpenetration in at least two-thirds of the encounters, with at least some of the rounds fired. This was typically caused by a soft-tissue impact point, where the bullet didn't hit bone or any major muscle structures. Even hollowpoints over-penetrated under these conditions. When bone was hit, or a major (tough) muscle group (e.g. the thigh or buttock area), overpenetration was much less likely.
Fast, light bullets certainly were less prone to over-penetration: but they were also prone to not penetrating enough. I've seen several surface "crater" wounds, where flesh and muscle was destroyed, but the bullet didn't penetrate deep enough to get to major organs or bones. I had this happen to me once... I'd handloaded the 88gr. Speer hollowpoint (intended for the .380 ACP) in a 9mm. case, with enough powder to get it up to 1,500 fps. In my youthful enthusiasm, I thought this would be an explosively effective round. Well, it was, but it exploded on contact, and didn't penetrate more than 2"! Fortunately, it exploded on a part of the body that led to instant incapacitation (the left testicle, actually...
), but I destroyed the rest of those rounds, and went back to something with better penetration, even if it had less expansion.
Unfortunately, there's no way to guarantee that one will hit bone or a major muscle group without some big-time expenditure on practice ammo. and training. For someone who shoots a couple of hundred rounds a year, this simply isn't enough. This means that such people are more likely to have defensive shots over-penetrate the target, and are thus more likely to face the liability issues involved.