Rattling Compressor DANGEROUS?

97 Pontiac Grand Am SE, 126,000 miles

I took my car in a couple of months ago to have the water housing changed. The mechanic told me that my compressor makes a rattling noise when the air and heat are off. He said the compressor was going bad and should be replaced, but also that technically I didn't have to because all I had to do was turn the air or heat on and the rattling went away. He said to check back when it gets warmer if I have A/C troubles. I was aware of this problem as it has done this for at least a year.

Now, he also told me that all of my hoses were about to blow and wanted to charge me $500 for a kit and replace all my hoses. I decided to get a 2nd opinion on this with a different mechanic. The new guy told me that my hoses were fine. However, he pointed out to me that my compressor situation was extremely dangerous and I shouldn't drive the car under any circumstances. This he told to my agent, as I just had my wisdom teeth pulled so I couldn't really talk to him so I couldn't inform him of what my other mechanic said about the situation. I'd like to get some input before I talk to him personally about this, as it is a very expensive repair.

Between the hoses and compressor situation I feel that I am being lied to by both mechanics, one for each situation. I'm not concerned about my hoses (you can't see them anyways.) But can anyone tell me. Can a failing compressor actually be dangerous? Especially since this is such an old problem and I can technically make the rattling stop?