You're right, there is no need for compensation.
As for the people saying speeding up the game is a terrible idea, are you saying the overall speed of the game has no bearing on gameplay? If so, that is simply not true. The speed of the game effects one critical thing: timing. Immediately after the hitstun code came out and I started practicing combos, I noticed that occasionally I would mess up due to premature button presses. Since brawl is so slow overall, it's easy to get ahead of yourself and mistime an input. This is why people feel like the game becomes so much smoother when it is speed up.
So far all the feedback I've seen concerning the old buggy char speed code has been nothing but enjoyment of the increased speed, and enjoyment should definitely be important. Intensity and excitement is a good thing, whether it effects core gameplay or not. Why do you think there is a such thing as speed chess? Chess is by nature a slow methodical game (a lot like Brawl?), yet people felt the need to create something like speed chess...
Take dash dance for another example of a speed critical mechanic. A big complaint for Brawl is that the DD window is too small. It's often compared to Melee's which is more lenient. Think about why that is. Melee is a faster game, so the DD window would have to be more lenient than in a slower game like Brawl. If the window in Melee was similar to Brawl, you would have great difficulty DDing consistently since the game is faster and would require such rapid left/right sticking. In this particular case, a better DD is sort of a side effect of the faster game, but the main point is again that overall speed is an important factor in how the game operates.
Still think a faster game does nothing for actually gameplay? What about reading the opponent's actions? This is obviously harder in a faster setting. Think combos are too easy? Speeding up the game would make reading DI harder.
We say we want a more offensive game? A faster game is naturally more offensive! How is this? Imagine a game even slower than Brawl. In a game like this, you could see a lot of things coming before you are required to commit to a counter attack. Now why would you bother going on the offensive in a game where it's so easy to simply wait and react, knowing that you had more than enough time to do so? The attacker would always be at a disadvantage, and this is the case with to an extent with Brawl. By speeding up the overall gameplay, you create an environment where waiting and reacting can be dangerous given the shorter window to do so.
These are just some points in support of a faster game. I know that I personally had great fun testing the buggy char speed code. I would never recommend it for Brawl+ in it's buggy state, but if a bug-free alternative like the overall speed vs level speed combo actually works, this is something that should definitely be considered. Personally, I can live without a speed increase. I enjoyed Brawl before at a slower pace, we all did. But I'd be surprised if someone actually tries the game sped up and still says they prefer it slow.