I think the solution with the turn button is great. The operation is much more logical. Since I almost always turn it on anyway, I don't mind if it is visible when it is switched off.
Of course, it is now not easy to see whether it is activated or whether the position happens to be north. Tip: if pointing north, a red line through the compass needle.
Fading out completely may be good for people who only use one setting. However, this function is of no use to most. The free positioning of buttons (menu, compass needle, centering, map content panel) would be a great thing. Is that very difficult to do? I had already written the suggestion when I was developing LM4.