People are never 'finished' or, like Chad pointed out, 'perfect'.
Every human being is a work in progress.
When I was a kid I thought I would be 'done' changing when I reached the age of 18 or 20 or so. Of course that is not true at all.
It may seem like some people have no self knowledge and think they don't have any flaws, but I think they are just being douches and just don't show the world they are uncertain about some things themselves.
EDIT: Actually I don't really understand what you mean by compensating stuff you cannot change. If you cannot change it, how do you compensate it? Can you give an example? Are you talking about physical characteristics that people tend to compensate through behaviour, like short people might compensate with tough behaviour?
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