It’s pretty clear why time compression is forcibly ended almost all of the time for me (though once I traveled halfway across a star system, in clear, void space, with no bogeys identified, trying and failing to compress time all the way across). The chief problem is that it stays forced off.
Yes, I see that there’s a pirate off my bow. He doesn’t see me, I’m drifting with IFF and my main drive off, and my modules are quite low-emissions. I’m in the blue, man. That pirate isn’t going to cross my path or see me. But still I half to crawl along in uncompressed time. I guess I’ll get up again and do a bit of housecleaning while the crawl continues, because I can’t sit here and watch the ships crawl across the space any longer.
This happens to me several times each play session. I’m not exaggerating when I say I leave the game running and do something else. The gameplay is that boring to me in these situations. Sometimes the pirate is on a vector fairly directly away from me, and the crawl-time will be short, but too often that is not the case, and we fly in company, or close enough to prevent time compression from working for long minutes.
I suggest that deactivating compression on appearance of a threat is a fine idea (though it would be even finer if we had options controlling what events kicked us out of speedy time). But preventing compression while the threat still exists is a terrible idea.