I agree that the southern slave-owners would never accept compensated emancipation. There is too much talk of their cherished "way of life" which revolved around the manoral/plantation system. Compensated emancipation might have avoided war, but at a cost to their way of life. Also, much of the "wealth" of the South was tied up in slave labor, considered a "capital asset". Would any compensation be considered sufficient - could money replace a perpetual supply of unpaid labor for the slave-holder and his heirs? Wouldn't the plantation owner's status in society be diminished when their worth could no longer be measured by the number of slaves they held?
Also, there is little discussions these days about how the Federal government would have paid for compensated emancipation. Where were the funds to come from? Before the war the Federal government had very low revenues and abilities to tax, mostly through tariffs (which was already a sore point between the southern and northern states). Would the government raise the tarriffs, which would have ended up taxing the slaveholders to raise the money to compensate them for the loss of their slaves? (A neat trick, but one which would have been readily apparant). There was no authority for an income tax at the time, Lincoln's income tax was very modest and limited by today's standards, and came through wartime powers allowing it to circumvent the proportionality clause of the Constitution. Again, would this tax apply to the slave-holders as well?
Finally, any compensation would not come in the form of an immediate payment of hard currency. Instead, the slave-holders would probably get a note or bond which allowed them to collect over a period of years, perhaps decades. The immediate years in which the former slaves would need to be paid wages would be very difficult, as the initial payments of compensation would be unlikely to provide enough cash to pay wages to the former slaves. The economy would suffer a depression as fields went out of production.
Of course, if the slave-holders could have seen four years into the future, they would have realized that they would have suffered all these problems, while receiving NO compensation. But they thought they could prevail, harkening back to the revolutionary war struggle. But they simply didn't understand the size of the armies and the logistics burden which the war would impose, a challenge which the North could meet, but not the South.