no-hands does require compensation
Charles is right that pedal steer soon becomes a non-issue (except for the first stroke or two).
But riding no-hands does require an alternate way of compensating, since there is no getting around the fact that you are applying a torque to the steering column. Watching myself, I see that I compensate by rolling my shoulders, rolling onto the left when I push the right pedal and vv. It has the effect that I push outward with my feet, balancing the off-center torque, and get this sideways force from my opposite shoulder: each push is diagonally across the steering column from, e.g., left shoulder to right foot.
This is inherently not as efficient as pulling on the same-side handlebar, I think, since some effort is directed sideways and not into pedal force. When you pull the handlebar, your foot can push purely forward. Nevertheless, it's a whole lot of fun, and contributes to that wonderful feeling of gliding effortlessly down the road.
Plus, your hands are free for texting, eating lunch, taking photos, adjusting clothing ....
BK