Is Baby Oragel safe?

Last week, I made an off hand comment on Facebook about Tyler teething and needing to get oragel to help him trough it. A friend of mine who owns a day care in San Antonio sent me a message saying that she had been told by the state that it's unsafe and can reduce the oxygen levels in a baby's brain. A simple Google search later and sure enough, there is a FDA warning about not using Baby Oragel and similar products without a doctor's guidance. I called our pediatrician to get their take on situation.
They told me that they stopped recommending Oragel and similar products over a year ago because they have read reports that too much at one time can reduce a child's gag reflex. Our doctor didn't know about the latest FDA warning. I hadn't seen anything about it until I went looking. Since being told about the FDA warning, I have seen the information on multiple websites, but none of them are sites I would look at on a regular basis.
It boggles my mind that the FDA can issue a serious warning about a product and that information is not shared with the general public in a way that parents can make informed decisions about the care for their children. The product is also on the store shelves without any kind of warning that the product may be dangerous. How is it okay for the FDA or any other agency to issue warnings that a product may not be safe, but it is still being sold on a regular basis? For anyone who wants to read the FDA warning, here is the link:

http://www.fda.gov/Drugs/DrugSafety/ucm250029.htm