I like the idea, but it doesn't really seem to fit the game so much. I find that camping the outskirts of the map is the way to go on survival games, and as saradabaschi already said, a compass pointing to your position isn't going to help in your case if you're trying to keep a low profile. That beacon of light doesn't help whenever you kill somebody either, as it suggests to everybody in your area that you're injured and are probably not expecting somebody to jump you right after fighting another player.
I wouldn't mind a compass being made into a kit however, seeing as you are then sacrificing a few fantastic kits for a little more awareness, but i can't see somebody choosing a compass when there's a tasty looking diamond sword right next to it, and if nobody is going to be using the kit, then what's the point in adding it?
Then again, you could reward players that are dominating the battlefield a little perk to assist them in hunting down those last targets that are trying to camp their way into the deathmatch. Perhaps similar to the UAV killstreak from Call of Duty, where upon getting a set number of kills, you will be rewarded a compass that'll point to the direction of other players for a limited time.
Nobody likes a camper, but a good thought to consider is that they're likely camping because they either don't know their surroundings, or they have bad gear and are waiting for a player with similar gear to stumble past so that they can get the jump on them. If you're in more dominating gear than the camper, you'd have to be really terrible to die to them.
