there are tons of extremely skilled players who use compressors.
Exactly, there are tons of compression techniques that are not even worth trying until you are recording a bang on player anyway! With each player, amp, tone, style, mix you record you have to work out if compression is needed and if so, what sort!
Compressors are a phenomenally simple concept but phenomenally hard to master entirely, they can do so much. I think because they are the only 'effect' that can manipulate the sort of things normally only the player can control. They start to become as difficult to master as the instrument itself, with the added bonus that you have to master it for EVERY instrument to be a good recording engineer!
Thats a bit of an exaggeration but it illustrates the point, compressors (and to a lesser extent eq's) are one of the main tools in helping regain some of the excitement you loose when capturing a bands performance to hard disk, they have the power to trick the brain into feeling some of the same excitement you get when standing next to a great drummer in a great room etc.
The overuse of compression in much modern MASTERING should not put people off using them! Also note that the trends in pop mastering is generally label pressure rather than creative decisions by the mastering engineer, the labels just want something that sounds huge when compared to the last track on the radio but the upper limit to how loud you can go was reached quickly and now its hard to turn back down in some genres!
Interestingly a heavily but well compressed mix will still normally sound pretty dynamic and exciting if done well. The extra perception of space you get when using compressors heavily to push things far forward in the mix is really something, its the overall squashing that can be damaging even if done by very skilled mastering engineer.
Feists album 'The Reminder' has some uber compression in the mix but the master seems pretty conservative and results in an interesting sounding record. Sometimes good smashing on the master works for a band as well, 'Band of Skulls' first album has great production and a strong master but it really works for them, check out the track 'Death by Diamonds and Pearls', filthy!