I guess people must be able to do it, though.

-- Craig

Whilst not a general defence of digital compass, there is one situation where I have found a digital compass to be extremely useful - sailing. The compass in question had the ability to store several bearings and recall them later which makes taking three bearings for a position fix a snip, especially on a pitching sailboat.

The only digital compass I have is the one in my Tissot T-touch watch. I have found it to be as accurate as any button compass, but all it is really good for is getting a general direction. I still keep my Suunto compass in my bag, as I haven't found anything as accurate yet, especially not as foolproof, simple, and inexpensive.

I inherited a digital compass that had many cool features. I think it would even wash the dishes if I pushed the right buttons. The only advantage that I could see over my Suunto MC-1G is that it was big enough to bash a mugger over the head.
I plan on having my compass work during the worst of times not just the best times and would not trust my life to a battery powered compass. Even with the most modern navigation systems the aircraft I have been around all seem to have a very simple, durable and dependable compass as a backup to whatever wonder of the week navigation system they are using.

I'd say the most practical application of a digital compass (really a misnomer, electronic compass with digital display would be more appropos) is when it included as part of a GPS system. Otherwise, why have yet another survival tool that must use batteries, and will eventually fail, when something completely passive and much more rugged will do just as well or better? As for memory, I would have higher confidence in a piece of paper and pen than another electronic memory device that will also fail eventually, maybe at the worst possible time.

This is my caveat: Do not rely too heavily on electronic devices, they require something you cannot always provide, a power source. Whenever possible, stick with what you know works and use the electronics as a convenience and not a necessity. Going into a cave with nothing but battery powered light sources will make you a believer.