Your post is a very interesting development of paradoxes -- but, if I may be permitted a bit of humor first -- Blimblam, have you been into the Medical Marijuana again?

The very idea of boundaries to protect ones self implies the self needs protecting.
What I mean is maybe you're overthinking this. Yes, boundaries imply that the self needs protecting. Our psychology is just as vulnerable as our physiology, and when you ride a bike you wear a helmet. When you swim you hold your mouth shut (or you'll drown). There are a multitude of things that can harm us psychologically -- people who will purposely attack us, or who will use us as if we're objects, or who will do things that will set off our own unique triggers without even knowing they're doing it. We need boundaries to filter all this. We can gradually let the boundaries down around people who have proved that they won't do these things -- but at first, it's essential to have them, IMO.
So isn't compassion with boundaries a form of ignorance of the true self to protect the false self from experiencing the pain that lurks within the unconscious?
This one is trickier, and maybe you're onto something here, in part. Yet still... .isn't belief in a 'true self' and a 'false self' also a belief? You go on to say:
At the same time adopting any idea or philosophy creates a tether or limit from knowing the true self. Because belief requires faith and faith means one does not know a thing.
IMO these statements create another paradox: 'true self' is a belief, yet you say adopting any belief prevents you from knowing the 'true self'. So in order to know the true self you must have no true self.
But what if beliefs, and boundaries, are just as much a part of our 'self' as any other aspect of our thinking process is? What if 'true' and 'false' are merely terms to refer to the appropriate contexts that will trigger a given constellation of 'self' to arise?
What I think I mean (

) is that all these parts you've identified -- compassion, true self, false self, boundaries, external and internal validation -- can have their place in the dance; more or less at different times in our life, or in different social situations.
I caution from my own (unfortunately extensive) experience with paradoxes, similar to those you've defined between these different elements, that such paradoxes are often generated by the thinking process itself, are apparitions of thought, rather than true relations between the elements. I'm not saying that's true here, necessarily. But a lot of people really like compassion, so if were you I'd think it through a couple more times before letting that one go.