That's a common missunderstanding. Modern compression drivers did make quite a few advances in the last years and are on par with the most audiophile dome drivers. They can just play louder (a lot).
Also SPL and THD have a tight relationship, so if you can play louder you will end up with lower THD on moderate SPL. Just look at our measurements and name a dome tweeter hat can deliver <0,1% K3 @1Hz
@100dB.
Another advantage is that compression drivers can be easily paired with a horn or waveguide because of the wavefront they generate. So you end up with a cleaner transition to whatever you want to shape the dispersion.
Model M1 has 140 x 100° directivity so very wide in the horizontal plane which is very useful for near field application (>1m ). Since it's also constant directivity, reflections will "sound" almost the same, they are just delayed. But if you have too much reflections the sound will become too diffuse, but that highly dependent on your room (size and treatment). In my experience the transition point in common listening rooms is at about 3m or a bit more. So at 1-3m you will be fine.
As with Model S1 it's more optimized on a defined listening position that you will find in most home theaters. It has an even wider directivity pattern in the horizontal plane (full half space = 180°) but extremely narrow vertical directivity. This is because speaker mounting height and ear level are well defined and interact with distance and directivity. Combining those properties leads to a very even sound distribution. Also flour and ceiling reflections are highly reduced, so you can sit at 5, 6 or more meters away. 1-6m works out well.