Thank you for that post, and your story ... it's easy to understand how a compass would necessary in less than good visibility waters, but your post shows that a compass is just a good idea all aroundI'll offer a tropical water perspective: Compasses are often useful even in areas with good visability.
Here is why: Some reef areas do not have a predictable slope (or almost no slope at all for hundreds of yards), and sometimes large stretches of reef can look pretty darned uniform.... not much better than swimming over long stretches of sand as far as "landmarks" you can navigate back home with.
Personal anecdote: I got "lost" 2 weeks ago at a shore diving site here in Hilo I've been diving at for over 30 years. I had a compass on my wrist, but was not using it since I knew the site well, and just used "natural" navigation.... but we had decided to explore a more remote area of the reef, visibility was maybe 50 feet, it was an overcast day, and the reef in this area varied in depth from 50 to 70 feet, with sand areas between large stretches of reef. After swimming for quite awhile, we reached our turn pressure. I turned towards home (I thought) the depth gradually decreased as expected.... but then started to increase. Puzzled, I looked around, thought I understood what was wrong, and changed course, and for several minutes was convinced I was on the right heading (depth was decreasing). Then, the depth began to increase again! I finally looked at the compass on my wrist, noted that I was indeed headed towards shore, but by this time had lost all confidence in where I thought we were (and even doubted the compass) and decided to surface to take a bearing on the shoreline... when I did, I discovered I was about 200 yards aways from where I thought I was!
What had happened was I had been complacent, the reef had an unusual slope in the area I was exploring, and the overcast day resulted in less light penetrating the water thus less visual clues about direction. I had gradually gone off course by following the reef contour in an area of the reef I was not familiar with.
So to answer the original question: A compass is very useful, but only if you use it!
Best wishes.
Always take a Compass ... even when you don't need it
... cause when you do need it, you really do need it