Agreed--it just depends on your specific application. For example, if you are recording scratch tracks for practice and re-writes, then compress away! It will save you time and trouble. But if you are recording something for commercial release, or even a demo that will be heard by a label, then you want to do any compression in post-production if possible.
Another option is a peak limiter, which can be either analog or a plugin in your DAW. With digital, the hardware ones I've tried haven't been any good, but I haven't tried top-level ones, only budget-studio ones. You can get better digital limiting from some of the plugins out there. With analog, for vocals there are plenty of workable options (in hardware form of course).
The idea with a peak limiter is when it's set properly, your signal is not touched until it's about to hit the ceiling, and then it gets limited at that ceiling. It's still something I'd reserve for non-commercial productions, practice etc., but it leaves you more dynamic range to work with in post-production than you'd have by compressing more of the signal.
At a low budget, there aren't that many channel strips with
effective non-glitchy peak limiting. That said, there's an Ashly in the Amps FS forum that might be perfect for your application...
