A disturbance observer-based-dynamic load-torque compensator for current-controlled DC-drives, as joint actuator of assistive exoskeletons, has been recently proposed. It has been shown that this compensator can effectively linearize and decouple the coupled nonlinear dynamics of the human-exoskeleton system, by more effectively compensating the associated nonlinear load-torques of the exoskeleton at the joint level. In this paper, a detailed analysis of the current controlled DC drive-servo system using the said compensator, with respect to performance and stability is presented, highlighting the key factors and considerations affecting both the stability and performance of the compensated servo system. It is shown both theoretically and through simulation results that the stability of the compensated servo system is compromised as performance is increased and vice-versa. Based on the saturation state of the servo system, a new hybrid switching control strategy is then proposed to select stability or performance-based compensator and controller optimally. The strategy is then experimentally verified both at the joint and task space level by using the developed four active-degree of freedom exoskeleton test rig.