I don't agree with the term "Overcorrected". This will imply going beyond the point of eliminating optical distortions and introducing new ones (like from barrel to pincushion) and this is not what applications like DxO or LR3 do.
Those "worse distortions" are projection problems when you want to represent a 3D object on a flat surface (camera sensor). This is similar to a map projection of the world, like the Mercator projection, which has a lot of "distortion" near the poles.
I agree that there are cases where correcting distortions result in a less pleasing image, like using a ultra wide angle with people near the borders. You could even increase the "barrel distortion" to get the desired results (DxO has a function called "Volume anamorphosis" for this)
For architecture and 2D reproduction, those corrections are very useful.
I second Stamper, just apply the correction that results in a pleasing image.