I was born in Turkey in 1950, lived educated served in the military until 1980. I know the Turkish culture since I still live that culture as my own. Based on my insight to that I have I must say that compensation would make things even worse with Turkey. The AKP would claim a big victory (which would hurt the moderate opposition) and continue the same policy against Israel and for Islamic alliance including Iran Hezbollah and Hamas. What Israel needs to do is to silently support the major opposition to AKP (The CHP) . Only when th \e AKP (Islamist party) loses control of Turkey can the Turko/Israeli relations can slowly start to recover.
Turkish prime minister to form interim government with at least 2 Kurdish ministers (AP)
from the article: Israel should compensate Gaza flotilla victims