Newbie is my tank overstocked?

[vicltruong]

I have a 10 gal with 5lbs live rock. No corals; HOB filter 70gph and an internal filter 70gph. I have in it 4 fish:

1.5" ocellaris clown
1" ocellaris clown
1" blue damsel
1" 3 strip damsel.

I have this for 2 weeks and everything looks alright. I added the fish slowly and cycled the tank properly. 15% water change every week. Amonia 0, Nitrate 0 and PH 0.

I'm wondering if this is overstocked? According to most literature it is overstocked when the fish grow up. But I see so many people overstock their tanks and it's doing okay. I was also wondering what are the consequences of overstocking? And also why are most of the fish literature recommeding such rediculously low stocking guidelines? i.e. I have read some people recommend 1" per 10 gallon. What is the point of that?