I sometimes think the lack of regulations in building materials allowing the use of wood pulp in food products and engineered lumber (which is basically wood pulp glued together with highly flammable resin) is a direct result of the Koch brothers political affiliations. Please don't hate on me! Just my very humble opinion and something I had been concerned about for years.
I work as a forest/wood products industry analyst. Though I have no love for the Koch brothers' business practices and political meddling, there's really no need for conspiracy theories to explain the industry's increasing preference for engineered wood products: It's about money, and not just the money that's pouring into the Koch brother's pockets. Almost everyone* in the supply chain, from mill owners to homeowners, benefit financially from engineered wood products. They have a much lower raw material cost than solid wood products. You can use small, poorly formed trees (wood that would normally go to a paper mill) and sawmill waste to make products that surpass solid wood products in strength, stability, and consistency. Wood products manufacturers pass these savings on to builders, who save additional money in reduced labor costs and pass those savings on to consumers. The result is that building costs are lower, wood utilization is higher (i.e., less wood going to waste), and buildings are safer today than they were in previous generations. As you note, off-gassing of volatile adhesives and fire safety highlight the fact that there is still work to be done, but don't take that as evidence that we haven't made significant strides in building safety over the last 100 years.
*It can be argued that forest owners are the losers with respect to engineered wood products; higher utilization of the wood that is harvested, combined with shifting preferences to cheaper wood sources, reduce overall demand for wood and drive down timber prices. Basically what's happened over the last 20 years or so is that the price of the lowest echelon of timber - pulpwood - is propped up by the increased demand, while saw log prices have been suppressed, reducing the spread between the highest and lowest prices than landowners are paid for their timber. It has probably been a net negative effect for land owners.