Don't squash layers that have a clip or overflow clip.

LayoutTests/compositing/geometry/limit-layer-bounds-transformed-overflow-expected.txt

 middle
 (GraphicsLayer
   (bounds 800.00 600.00)
   (children 1
     (GraphicsLayer
       (bounds 800.00 600.00)
       (contentsOpaque 1)
       (drawsContent 1)
-      (children 1
+      (children 2
         (GraphicsLayer
           (children 2
             (GraphicsLayer
               (position 129.00 29.00)
               (bounds 100.00 100.00)
             )
             (GraphicsLayer
-              (position 108.00 8.00)
-              (bounds 242.00 162.00)
+              (position 129.00 29.00)
+              (bounds 200.00 100.00)
               (drawsContent 1)
             )
           )
+        )
+        (GraphicsLayer
+          (position 8.00 8.00)
+          (bounds 242.00 162.00)
+          (drawsContent 1)
+          (transform [1.00 0.00 0.00 0.00] [0.00 1.00 0.00 0.00] [0.00 0.00 1.00 0.00] [100.00 0.00 0.00 1.00])
+          (children 1
+            (GraphicsLayer
+              (position 1.00 146.00)
+              (bounds 240.00 15.00)
+              (drawsContent 1)
+            )
+          )
         )
       )
     )
   )
 )