I need to find someplace IRL: I consult a map, then failing that, ask the nearest person to point me in the right direction until I find someone who does. I live in a town with some tourist spots, and during tourist season randoms from other countries walk up to me all the time. That's how you find your way in reality. And that's with roads and obvious signposts and clearly marked routes and everything.
Unless you can do the same in your RPG, leave the map and compass in. They're substitutes for the world being too poorly designed to provide all the directions that would be there IRL (such as signposts, in conspicuous locations that your eyes are naturally drawn to, not randomly placed in dumb spots by devs who can't put themselves in the place of the player), and for not being able to talk to the NPCs.
Alternatively, design the world well-enough and write enough dialogue for your NPCs that they can give directions this way. But nobody does that. It's too much work. So, instead, if the directions aren't provided in-game people just google them, because that's what comes naturally.
Maybe in a game where the exploration is the point or part of the challenge, or in a particular context in a game where it otherwise isn't (like when there are no NPCs around because you're in a dungeon or something), making the player have to consciously keep track of their environment makes sense.
But mostly, the omniscient guidance arrows are just replacements for not being able to ask directions or for the exploration being otherwise poorly implemented. Especially for open world RPGs like Bethesta's where you have to find shit like one generic NPC in a generic hovel somewhere in the wasteland who may or may not even be there based on the time of day and you can't tell if the location you've found is a house or a pile of rubbish. Or maybe he's in the third floor of the building on the right in a room where he sits in the corner two-thirds of the time and there's zero way of finding any of this out because you can't ask the nearby NPCs shit like "where's the guy I'm looking for?" because they can't afford VAs for that. Games like that, the omniscient arrow is necessary, though one might reasonably argue that's because they were designed with the omniscient arrow in mind, but I expect they didn't roll a dice and end up saddled with that arrow by happenstance and then just rolled with it. They went with the arrow because it's way easier for them.