Let's say Jordan is a practiced speaker of Toki Pona who has never seen a hippopotamus, and has just now heard "river wonder dog" for the first time ever. Just like Pat, Jordan can infer that this refers to a four-legged animal, probably a mammal, definitely big or impressive, that spends lots of time in water. (The context of rivers is lost, so Jordan might assume that this creature lives on ocean shorelines, or even in open water.)
In either language, the creature's name uniquely identifies it to people who are already familiar with the animal, and gives a useful description to people who are unfamiliar with it.
I'll also mention that German and Mandarin have a significant amount of compound words. There's even a joke about German, that if you want to make a new word you just smash two words together. Animal that lives in my house? House-animal. Haustier (pet).
[0] English is a "bastardization" of a bunch of languages. There's plenty of words in it that are compound words from other languages.
But for a different counterpoint, lets say we gave a specific name to everything. For example, in my new, totally not-fake language, a hippo is a klantomolarnal.
Unless you already know a hippopotamus is a klantomolarnal, when someone says klantomolarnal, will you know what he means?
So, if our options are:
1) colloquial compound words that are informative but inexact and may require context (most languages) 2) unique words for everything with no intrinsic meaning (no language) 3) compound words that uniquely describe a thing (ithkuil, lojban, basically nothing useable)
It seems clear that (1) is our only real option. Toki Pona just has a harder time because of the smaller shared vocabulary which makes things more ambiguous.
In my limited experience, context clears things up tremendously.
(incoming rusty toki pona)
o sina lukin e ni! // Look at that!
o sina lukin e telo suli soweli! // Look at that big, water mammal [hippopotamus]!
One could say that the idea is to, if you have to refer to something in a given context, you try to cobble together a description, just enough to differentiate it from other things. "sike tu" (two circles) will be useful to differentiate a bicycle from a car, but if you want to differentiate them from a pair glasses you'll probably need to use a different term - "sike tawa" (moving circles) maybe! What you have to learn, instead of set compound phrases, is the ability to improvise names/descriptions for things on the fly :)