The higher the allocation rate, the larger the throughput advantage of compacting collectors.
But compacting collectors have all sorts of other costs - complexity, hard to make them concurrent, potential for high barrier overheads. So, if your allocation rate is low enough, then the throughput advantage of the compacting collector might be low enough that you might think to use some other kind of collector.
JSC is a great example. I should say that the allocation rate that matters is really the allocation rate scaled against the GC's speed; in classic terms we're talking about the cons/mark ratio. JS has a low cons/mark ratio (low relative allocation rate) because the JS collector is fundamentally no slower than any other one but the JS mutator is significantly slower than something like Java. So JS's allocation rate relative to the GC is lower than Java's allocation rate relative to the GC. This means that all GC throughput effects are dampened, which is one of the big reasons why JSC can get away with a collector that doesn't compact.
Also, the generational hypothesis has nothing to do with whether compaction is profitable. These are orthogonal things.
(EDIT: replaced "fundamentally now slower" with "fundamentally no slower", above)