I think the pointer spell is a good idea...
- it seems to be technically possible (within reasonable efforts from the DEVs - at least as far as I can tell

)
- it is a piece of useful magic, that fits in a world where magic is common but within limits (keeping the balance of the game)
Perhaps you can make the time it lasts depending on the spellcasters skill. Would it be following/turning if the target moves for the time of the spells duration?
Maybe it would be nice if there was an indication how far the target is away (like darker color is near, lighter color far away)
Regarding maps...
I think automaps are for sissys only... it makes the place feel bigger and more real if you can get lost.
Maps as static items are okay - this is also realistic for playing in a medieval setting.
Knights using GPS and a navigation system (with 7" LCD and subwoofers after they visited MTV (medieval tuning veterans?) pimp my ride) - are yet unheard of.