My thoughts:
The UI is a necessary tool to convey in-game information to the player - data such as health and stamina are things that are extremely difficult to convey without resorting to a HUD element or UI. This is perfectly acceptable.
However, tools such as the map and compass could be better utilized in real-time as items that can be equipped by the player. There is no need to pause the game, and there is no need for the compass to be constantly visible, especially while in battle.
I would love to see the map and compass equipped by the player, just like a shield, sword or staff. Left-trigger, right-trigger, etc... Hold the map and look around; Maybe I could carry a sword and compass while navigating the back-country, occasionally sheathing my sword to get my map out and make sure I'm facing the correct mountain or distant landmark.
This would greatly aid in the sense of outdoor exploration or adventuring.
Especially aiding the danger of battle - imagine being in the back-country at night and fighting off a pack of wolves. The danger of losing your orientation while in battle would add a tremendous element to the game-play. After fighting off the wolves, I'll need to get my compass out and re-orient to my destination - sometimes realizing that the battle has taken me way off-track and need to find my path again.
Far Cry 2 used this method incredibly well. (though believe me - it's the only element from FC2 I'd like to see in Skyrim.)
I don't imagine the devs actually incorporating this into the game - but I'm also wondering if this is something that could possibly be modded into the game? It would definitely change core systems, and I'm afraid it might be outside of what's possible.