I looked up the term, too, but I got a different description --
http://www.chainreaction.com/triples.htm
(search "compact")
"Just when you thought you had it all figured out, along comes the "Compact" crank. A new way (actually it's been around for some time, but forgotten) to get lower gears without a triple. Instead of the classic 53/39 front chainrings, you have a 50/36 (sometimes 50/34) combination that gets you quite a bit lower gears, while giving up a very small amount from the high end... all using standard double-compatible shifters & derailleurs. A high-quality compact setup is actually lighter weight than a standard double! The downside? You don't get as low a gear as a triple will offer, and you lose just a bit off your high end (the gears you'd be drafting trucks downhill in, but nothing you'd ever miss in day-to-day riding)."