So far, I've made do with a hand bearing compass. It's very useful to determine my position when I'm crossing a larger bay and would like to check on my progress. One time, this lead to what I call "dollar bill" navigation. I always have a laminated sheet with the relevant part of the local chart in the boat. So there we were in the middle of the bay, trying to figure out whether we were across the half-way mark yet, or not.
Somebody takes a few bearings, but we have no pens or rulers on board. So then somebody else pulls out three dollar bills, we line them up on the chart along the bearings in a "cocked hat" and presto, we know how far we have left to go.
I haven't really had the need to steer by compass, but sometimes I strap it down onto one of the wooden thwarts, pointing forward, so I can check tacking angles. Works best with ample manpower on board - amazing how patient some kids can be calling out headings.
But, not the thing to use for racing.