1. Compressed sound can be an integral (wanted) part of different genre aesthetics. I personally love dynamic mixes, but if you let your customers A/B mixes they will often chose the more compressed/louder one. If your song sounds weak after another bands song, that is an issue.

2. For reasons of health/liability there are maximum levels on headphones and mobile playback devices. That means if my mix has a high dynamic range the bulk of it may really just be too low when played back on the majority of headphones. If I mix my own music this is a bargain I can make if I mix other peoples music I would try to be a little more on the cautious side if the musicians didn't demand a highly dynamic mix.

3. Compressed sound works better in noisy environments and as background music. 90% of people who listen to music do not listen to it actively, they just let it run in the background or are passively exposed to it. Try listening to a good dynamic recording of Beethovens fith in your car with the window rolled down. You will hear some strong phrases then inbetween nothing as it is below the ambient noise floor.

Vinyl has the benefit, that I as the mixing engineer can assume that the listener will be much more likely actively involved with the music than say in a radio mix.