Earlier quoted context omitted.
Kip Hawley, former head of the TSA has answered this question a number of times, including conversations with Schneier. Most of the liquids that can do the type of damage the TSA are concerned about are likely highly oxygen reactive, or otherwise have significant obstacles to being combined outside of a lab environment. If that weren't the case, the TSA would have simply banned all liquids.
Why would you have to combine the liquids into one reservoir? Couldn't the N passengers just make N bombs from their 3x 3oz, each independently capable of going off, but intended to be detonated together for maximum effect?
Of course, we're now talking about a _conspiracy_ - and a conspiracy of four average people is 100x more likely to be discovered by a intelligence team than a single attacker.
So perhaps it's the forcing of attacks to be _conspiracies_ is the goal of allowing only small amounts of liquids.
Regardless - I think we can all agree that it makes liquid bomb attacks substantially more difficult than simply allowing people to carry on as much liquid as they chose, and therefore opening the door wide open to a lone attacker just blowing up airplanes at will without possibility of detection.