I recently installed a mod that disables the compass (yes I know you can also disable it in the INI settings, but this mod does other things too), and I have found my experience of the game to be much more enjoyable. It makes the game much like Morrowind was, when there was no magical quest marker telling you exactly where to go. You actually had to find the objective yourself. The other plus side is that you don't have those icons telling you where everything is. Because if you know where everything is, then you know that there is nothing else around besides those things and therefore you feel there is no real reason to explore around and pay attention to detail. But once all that is gone, then the world instantly becomes more of a mystery. You don't know what is in a particular direction anymore. You'll have to find out for yourself.
Now the main reason I'm saying all this is because I think the option to disable the compass should be built into the game so that non-modders/tweakers can enjoy it, as well as console gamers. I was telling my friend about it, but since he plays the game on xbox 360, he can't disable the compass.
So, please consider this for a future patch, Bethesda. Thanks!