It is somewhat lackluster as it needs the user to take a fixed amount of damage to activate this skill. In our current card pool, there's not many cards that can make use of this skill. Other than thinning your deck, there is no other notable benefit.
Problem: that requires a hell of a lot of luck. Skull-Mark Ladybug sucks if you draw it. It's also quite a waste: OK, so you gain 300 LP. But that's only if you lost exactly 1000 LP: lose more, and the gain is less. And why not just run Life Boost Alpha then if you run Compensation only for the LP?
I thought you could use it every turn after losing 1000 lp
300 LP recovery does appear lackluster at first; remember, however, that Bakura's ace card, Dark Necrofear, relies on Graveyard manipulation to fulfill its SS conditions. Discarding from the Deck allows him to simplify the process.