The whole idea of a "people pleaser" has largely arisen because people like to hear it. "Your problem is you are just too good of a person!" Attaching yourself to this label will just hamper genuine introspection and growth.
- It tells people they are inherently better than other people: "Other people aren't as good as you."
- It excuses their bad behavior: "Your bad behavior is not your fault, you just reached your limit in dealing with bad people. It would happen to anyone".
- It offers a false veneer of being reasonable, even when it is just a framework of excuses. As you say: "It points to a need to balance compassion for self and others."
I don't think such ideas are necessarily engineered this way, but that is why they proliferate.