I almost always compress drums while I am tracking, I just don't squash the life out of it. I use the compressor to allow me to get an appropriate level to tape (or hard drive, or whatever), and if the song needs more extensive compression, I will do this in the mix stage. Compression is intended for exactly this purpose, to control dynamics which are too wide for the recording format. Using compression in the "artistic" fashion which has become common only came about later. What good is controlling the dynamics as it comes off the tape, if the tape can not handle the dynamics in the first place? There is a big difference between compressing for dynamics control and using compression for color.
So yeah, you can compress while tracking. Most professional engineers do so, particularly when the drummer’s dynamics are a little wild. From a purely engineering perspective, when dealing with a drummer who’s dynamics are too wide for the format, that is THE proper solution. Recording with the levels low will only lead to a noisy signal, and you are sacrificing dynamic range that way anyway (it does not matter if you are using a 24 bit system if you are only using 12 of them). If you have a drummer who does not need to be compressed, then great, but that is rarely the case. It is the engineer’s job to make it sound good no matter what is happening on the other side of the glass.
Compression frequently gets a bad reputation on this and many other internet forums (I have had people say to me "I don't use compression" as though it made them noble or something, instead of simply inexperienced). The problem is not compression. The problem is overuse of extreme compression.
Light
"Cowards can never be moral."
M.K. Gandhi