You're not wrong, but a compact does have one large disadvantage for composition: Depth of Field. Too much of it, to be specific. There're lots of shots in the photography gallery here which are sound in concept, but which suffer from a cluttered composition thanks to all the stuff still clearly visible in the background.

Doesn't mean compacts can't take a good photo, though...I might make a point of shooting with the S95 a bit next week to see what I come up with.