I would counter that a large majority of players that are looking for an old-school, challenging, slower paced MMO such as this has been advertised as, do not want the GPS/compass.
You think it's tedious but we think it is immersive, let me give an example a shot.
Players will take the most efficient means possible almost always. I myself as a fan of no GPS/compass would not turn it off because it would put me at a disadvantage and not be the most efficient means. If there are GPS/Compass then what happens is players stare at the dot/arrow instead of being a part of the world.
I would ask you to please think about those other games and ask yourself how much time you've spent looking at things in a zone like cabins, sign posts, twists in the road, what the wall looks like from such and such spot. More than likely you spend the majority of your time on Auto-Run staring at the mini map, or if there is not a mini-map you're still on auto-run pressing M here and there to check on your direction.
Staring at the dot/arrow also Shrinks the size of the world because you are staring at a map or UI element instead of looking around you at the world. It make the world seem to be comprised of only the destinations that you've arrived at and the rest is just a blur of follow the glowing trail.
Forcing players to pay attention make it feel less like playing a game and more like living in the world. There is so much to be gained by the play experience of living in the world and feeling present rather than GPS. It makes it feel like an adventure instead of a quest hub with Siri saying take the next right. Getting lost adds respect for the world. A good player that has a dungeon memorized is valued for their knowledge and leadership and pulling skills etc.
If the concern is the mainstream MMO playerbase then we may as well start adding quest markers, glowing trails, instant travel all over the place, zerg-fest through instanced dungeons, dungeon finder auto-grouping to go with it, and a cash shop....
If we add all of those then what is the point of Embers? Just go play any other MMO that exists now
Edit:
The FAQ post from Undone mentions the skydome so clearly the navigation will be something like using the sun to tell which way is which. In EQ1 vanilla the clouds always traveled the same direction and if you knew that you could figure out which way you were going hehe.