Living in a compound has the following advantages:

All home maintenance costs are taken care of by the management.
You have facilities (usually) like a gym, swimming pool, club-house and a playground for kids.
You have gate "security" who are underpaid, underfed and undermotivated but will usually keep an eye who comes into and leaves the compound.
You see your neighbors, although that's not always an advantage.

An independent villa is just the opposite. You basically have your independence and no curious neighbors. These are also larger than villas in compounds.

I know a few Westerners living in independent villas and they're happy with the experience.