The diagonalizable matrices are not bounded, hence not compact. If you enforce a bound on the spectral radius or on some norm of choice (a natural thing to do, given the previous remark), then they are still not compact, because they are not closed, as you can see through examples like:
$$A_n = \begin{bmatrix} 1 & 1+1/n \\ 1/n & 1 \end{bmatrix}.$$
This has trace $2$ and determinant $1-1/n-1/n^2$, which is not $1$, so it has distinct eigenvalues, hence it is diagonalizable. But $\lim_{n \to \infty} A_n$ is one of the classic examples of a nondiagonalizable matrix.
More can be said: the set $D$ of all diagonalizable matrices of a given size turns out to be dense in the set $M$ of all the square matrices of a given size. So $\overline{D} = M$, which is considerably larger than $D$, so $D$ is not closed. But this is harder to prove than my simple example.