Although, It would be very nice to at least have an item/object description pop up if your "hidden cross hairs" are targeting something.
I don't disagree with this, but there's a problem: the 360 controller and the Look Sensitivity setting are bitter enemies and do not play well together. Anyone will tell you the PC version is better when it comes to movement.
The only way this can be done is a mechanic which allows for a dual-setting: armed and unarmed Look Sensitivity settings. Otherwise, all we'll get is the frustration of seeing those "hidden cross hairs" flash while trying to "aim" so they stay put. I get this now, and it's frustrating, and that's because my LS setting is nearly at max.
The way I'm playing now is having the compass brightness dimmed as far as possible, no cross hairs, and dealing with the "overshoot" when looting/searching. TBH, it does get better with more game time. Experience makes for a great teacher.
I also hope this is addressed in the next TES game (because it won't be done in Skyrim).