A major "money race" laid out a mile marker in the wrong place a few years ago because the map drawing did not indicate the location of the split, and the text description of this location failed to record the direction of runners at that point. The layout team placed the marker on the wrong side of the road, facing the wrong way. Since this mark was on an out-and-back section, it caused momentary confusion for a lot of runners.
Since seeing this, I have got in the habit of prefacing every split description with the run direction. As in "Going northwest on Elm Street". Since many course layouts are done from vehicles, who must approach a mile split going the opposite direction from the runners' path, I find this extra bit of wording helps.
My Android has a good compass app. I have a good sense of direction, but like most of us, I can get turned around on a cloudy day. This is when I pull out the compass. Alternately, I just look at the on line imagery when I get home to establish the compass directions.
I agree that most people have poor compass direction awareness. But, as Duane says, vehicles and GPS devices have reliable compasses. Smartphones have compasses. There is little justification for a course layout worker not being able to use compass directions for timing points. I tend to use "before", "after", the # of feet from fixed objects, and the compass direction because of feedback from people doing course layouts. Even for some large races, as most of us must know, course layout is often delegated to volunteers who may have little experience. They need all the help they can get.