I like quest markers, but I think this is how they should be implemented:
-The quest marker shows on your compass
-And it shows near the door, or cave or whatever that you need to go
-The moment you load into the designated area, however, the quest marker only remains on your compass, but appears nowhere in game...not on the guy you're suppose to kill, not on the item you're suppose to steal, or whatever chest you need to get an item out of. The compass guides you in the right area, but you have to do everything else on your own.
Kind of like the Witcher 2. The compass directs me where I need to go, takes me to the designated area, but the rest is left to me. Which ends up me being lost in a cave and running around in circles dying.
Quest markers are fine, if done right. If done wrong they become hand holding.