I don't see it as hand holding, but as a helping hand for those who are new to the game/series, put your-self in their shoes, you are given a quest told to go to X but you have no idea where X is or even how to get there, the markers on the compass guide you in the right direction. If there was no " helping hand" then all those who bought the game who were not familiar with how it runs or how to play wouldn't even make it past Riverwood before turning the game off. To all you elitists who cannot understand this think of it like this, go buy Halo and play on-line team slayer without a radar, and see how long the game lasts before you think it's dumb because of seasoned vets of the game like myself are more than capable of tracking you down without the need of a radar. I am not on the Halo forums preaching that everyone should play without a radar, it's purely up to oneself to decide when they are ready to play that way, and for all you so called TES elitists if you where actually a wiser TES guru you would understand that and would except that not everyone is as " hard core" as you and would give HELPFUL advice instead of the condescending overtone that tends to fill the topics of game play/playstyle.
Skyrim isn't an online game. You don't have real players that you need to "get an advantage over". It's just NPC opponents. If you spend hundreds of hours playing Halo then you get better. As long as you have a good internet connection and a PC that can run the game smoothly (and you don't just svck at FPS), you get better. So what is wrong with an RPG where you actually have to figure crap out instead of being led around like a mule with a carrot on a string? Nothing. Nothing is wrong with having to use the old brain to find stuff or figure it out on your own. If you can't and you feel stuck, well that's what online hints are for I guess.

Consider yourself lucky - in the days of Daggerfall and Kings quest, DM2:Legend of Skullkeep, no one or few people had access to internet to look up hints. Now it will take you all of 5 seconds to find something with google.
It would be more appropriate to compare it to Halo on Campaign mode. Is it really hard to play Halo on Campaign mode with no radar? No, not really. I barely even looked at the radar until I got online and played against human opponents. So, sorry, no; you don't really
need "an edge" over NPCs. AI isn't that evolved yet. All NPCs have is surprise and brute force/zerg rush to their advantage. I see some of the same people complaining that the game is too easy on the Hardest difficulty and they have already used a cheat code or a game exploit. Why not challenge yourself a little and play with no radar? There is no radar or GPS in a fantasy setting unless you have some kind of magical clairvoyance. TES characters don't walk around with a "Pip Boy" attached to their arm...