Looks over cut to me. If you are going to try it again, do very carefully in a non-critical area. Myself, I would leave it alone.

Problem with most rubbing compounds is that they do attack paint and you can over do it. I find products designed for cars can be pretty aggressive on bike paint, although I do it as well.

Micro cracks on an almost 45 year old bike = patina. Myself, I like stuff clean, but I also like it to show age too.