No, that's just a benefit you get. Purely recreational flying can never be considered as being for compensation...what are getting paid for? Wearing out someone else's airplane?

There has to be a job that needs to be done, and you get something (money, flight time, discounts) in exchange for doing the job...flight instruction, aircraft repo, test flight, etc. Any flying of an aircraft which provides a benefit to someone else could be for compensation or hire.

As far as flight time being compensation, I think they would have to look at the individual pilot in question. They might be able to nail a low-time career-oriented pilot for that. I doubt they could get anyone who doesn't need the flight time for their career...doctor, businessman, widebody CA.