No, you have to use it in Obivion because there were little to no directions. That was the whole problem with it.
@captialsown
There doesn't need to be a pointer that points to your objective. I know how to read a compass and so should everyone else. If you can't than I feel sorry for you.
I can read a compass, too, but I'm not sure if you really can. I can't tell if you mean "Everyone else should because it's easy" or if you mean "Everyone else should because it's an important skill". If it's the former, do know it's a little more than just seeing where an arrow is pointing...
Edit: also, I made it clear I did not want a compass that points where you need to go. I was only pointing out how the compass in Oblivion was a dumbed down form of navigation with the end result and none of the effort, and how I would like real navigation in Skyrim.