Compass was added in August 2002, beyond the scope of the server.
http://www.tski.co.jp/baldio/patch/20020814.html
Quote:
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New Interface Window: The Compass! Press Alt-D to activate it. The higher your Sense Heading skill is, the more responsive and accurate the compass is.
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It was in P99 for several years since it was part of the UI. The Devs in the last couple of years have been able to tweak the client side files and disable non-classic UI elements such as the compass and map. Hopefully, they will be able to limit the number of hotkeys and chat windows in future patches.