Oh Clint, we soo gotta get you into the punch-in world brother. LOL! I'm old school too...but even in my old days of tape, I was still a punch in prostitute. THEN I'd learn the stuff I played after if I had to perform it live.
See that's the key...if you're like me, you probably never want to punch in or manufacture a part that you can't physically play live, right? At least that's how I feel. So I don't ever try to create something from punches or do comps....I play the part as best as I can, set up my punch points and fix my mistakes. It really does cut a lot of time out. When I used my tape machines, they were pro machines that didn't have punch inserts. You literally had to press play and record at the same time during a pass. It was brutal man!
Imagine having to find just the right point to sustain a note on with your left hand while pressing play and record at the same time....I soo hated that! One of my myachines had a punch insert, but the big one didn't. So I was stuck really doing things the hard way. But yeah, you definitely should get into that....you'll be happy you did once you get the hang of it.
It's ok to keep things simple in your mix. The good thing about automation though, you can set your compressor to just work and tighten things up. Then you automate so that things are more natural. The problem with compression is just like you said. That damage is brutal, but that's only due to 2 things most times.
1. The person may not have performed as cleanly as they could have...or they may not have used "mic distancing" on a vocal track. Stuff like that can dictate how much compression needs to be used.
2. When the above happens....people over use compression and rely on the compressor way more than they should. The same principal applies to people trying to master a song really hot. They rely so much on the limiter instead of getting the mix right, that they totally miss the boat.
BUT...when you have a good instrument delivery, have the right compression setting that just keeps you consistent while keeping things dynamic, light automation is the icing on the cake and allows you to totally be heard without the damage a compressor alone may cause. So it's great to use both. The better you perform the tracks, the less "in moderation" you can use these techniques. But in larger mixes with lots going on, it's going to be just about impossible to not have nodes running all over the screen. LOL!!! That's just the nature of this beast sometimes. :) Good luck Clint...keep us posted. :)
-Danny