The small theropod dinosaur, Compsognathus, has also been recovered from the Solnhofen. This fossil record presents difficult problems for advocates of the theropod hypothesis: birds (specifically Archaeopteryx) are supposed to be most closely related to the dromaeosaurids, which do not appear in the fossil record until Albian times (mid Cretaceous, about 110 Ma). Yet Compsognathus, which is believed to have diverged from the theropod lineage long before the evolution of the dromaeosaurids, occurs alongside Archaeopteryx 40 million years earlier. At present, only the vagaries of the fossil reord can be invoked to ‘explain’ the stratigraphic disjunction; our present understanding is unsatisfactory.
Here again, though, it is the age of the fossils which presents the greatest theoretical difficulties because, Sinosauropteryx being the earliest of them, all of the so-called "feathered dinosaur" discoveries post-date Archaeopteryx by tens of Ma. The only possible relevance their supposed feathered condition can have is as a candidate derived character (a synapomorphy or symplesiomorphy) shared with birds. Neither interpretation lends more than circumstantial support to the theropod hypothesis, nor sheds any light on the development of feathers, or birds themselves, for that matter
"The association of the hairlike structures of small theropod dinosaurs with feather origins is based on three known theropods, including Sinosauropteryx, Beipiaosaurus, and Sinornithosaurus (Chen et al. 1998; Xu, Tang & Wang 1999; Xu, Wang & Wu 1999), yet there is no convincing evidence that they are branched. More work needs to be done to reveal their implications for the evolution of the origin of feathers in birds. The recent discoveries of true avian feathers in Caudipteryx and Protarchaeopteryx have been regarded by many as the strong evidence for the presence of feathered dinosaurs (Ji et al. 1998; Zhou & Wang 2000); however, some believe that Caudipteryx could be a secondarily flightless bird, and therefore the feathers in Caudipteryx were also secondarily reduced (Feduccia 1999; Jones et al. 2000). ... [It is] uncertain whether the feathers in Caudipteryx were independently developed or were the primitive type of feathers defining birds and their immediate ancestors" (Zhang & Zhou 2000, p. 1957).