The way I understand this: The HUD is still in the game, but only appears on screen when it has a purpose, such as during a battle to display health.
This is different than the compass markers. The compass, I understand, is making a return... but the extent of the quest markers is unknown.
Ugh this reminded me of the horrible in my opinion "modern" health system that games tend to copy lately.
"Let's not use a simple health bar, let's hide the health from the player entirely and use a cheesy blood/cracked screen effect, and then have the health regenerate quickly when the player hides! For extra annoyanc... immersion, let's make a loud ringing sound and heartbeat effect, maybe even turning the screen fuzzy and black and white too!"
I will be so very disappointed if they bring that horrible monstrosity into Skyrim.
As to the topic obviously it's not cheating but people like to insult others to elevate their own opinions. It doesn't work for anyone except those that agree with them, of course. I think they should clearly have an option to disable that functionality in Skyrim. Considering they already said NPCs give directions based on how well they like you, I wouldn't worry bout it.