What if they knew the surrounding lands, also an all knowing compass is a bit you know far fetched.
But it seems that you're always a newcomer in these lands at the start of the game, so you wouldn't know the surrounding lands.
The compass markers may be a pain and far fetched, and I could do without them, but I expect if you're going to be traveling all over the province, especially off-road, you wouldn't do so without at least a compass.