Rhabdomyolysis, which I think is the kind of severe permanent muscle damage you're talking about, is well-known enough as a side effect of statins that it's taught in first year medical school classes. There was one statin that may have had a relatively high (1/2,000 per year) rhabdomyolysis rate and was withdrawn from the market after a couple of years for that reason. The statins currently on the market have about a 1/20,000/year rhabdomyolysis rate, which is actually low enough that no one is entirely sure it's not background noise although no one's taking any chances. Since they also have a 1+/500/year heart attack prevention rate, they prevent something like 50 heart attacks for each case of rhabdomyolysis they cause, which seems "worth it".
Muscle damage rates increase by a lot if you take statins with fibrates (another cholesterol lowering drug). I think (not sure) that prescribing these two drugs together is Officially Discouraged, although there might be some leeway in cases of people with crazy high cholesterol. I've also heard having grapefruit juice with statins increases the risk (grapefruit juice messes with liver enzymes) but I'm not sure if that is practically important or just random clinical trivia.
As for correct prescription: I am only a student, I haven't checked the official guidelines, and if you hear otherwise from any doctor trust the doctor and not me - however, as I understand it there is pretty good evidence for giving a statin to people who have already had a cardiovascular event in order to prevent a second one, and much weaker evidence (depending on whose studies and meta-analyses you prefer) for giving it to someone who's never had a cardiovascular event. Many doctors give them to the latter category anyway just because irreversible side effects are so rare and they would rather be safe than sorry regarding heart attacks; I see some merit in both sides of the argument.
I've had a little more time to think-- how sure are you that the studies you cite were well-constructed?
In a recent article, John Ioannidis describes a very high proportion of medical research as wrong.
Part of the problem is that surprising results get more interest, and surprising results are more likely to be wrong. (I'm not dead certain of this-- if the baseline beliefs are highly likely to be wrong, surprising beliefs become somewhat less likely to be wrong.) Replication is boring. Failure to replicate a bright shiny surprising belief is boring. A tremendous amount isn't checked, and that's before you start considering that a lot of medical research is funded by companies that want to sell something.
Ioannidis' corollaries:
The culture at LW shows a lot of reliance on small inferential psychological studies-- for example that doing a good deed leads to worse behavior later. Please watch out for that.
A smidgen of good news: Failure to Replicate, a website about failures to replicate psychological findings. I think this could be very valuable, and if you agree, please boost the signal by posting it elsewhere.
From Failure to Replicate's author-- A problem with metastudies:
The people I've read who gave advice based on Ioannidis article strongly recommended eating paleo. I don't think this is awful advice in the sense that a number of people seem to actually feel better following it, and I haven't heard of disasters resulting from eating paleo. However, I don't know that it's a general solution to the problems of living with a medical system which does necessary work some of the time, but also is wildly inaccurate and sometimes destructive.
The following advice is has a pure base of anecdote, but at least I've heard a lot of them from people with ongoing medical problems. (Double meaning intended.)
Before you use prescription drugs and/or medical procedures, make sure there's something wrong with you. Keep an eye out for side effects and the results of combined medicines. Check for evidence that whatever you're thinking about doing actually helps. Be careful with statins-- they can cause reversible memory problems and permanent muscle weakness. Choose a doctor who listens to you.
Forum about self-experimentation-- note: even Seth Roberts is apt to oversell his results as applying to everyone.
Link about the failure to replicate site found here.