By default Compiz uses "Static Application Switcher" module for handling Alt+Tab. At least that's how it's on Ubuntu. When pressing Alt+Tab, the UI would show only the target window and hide everything else. But this doesn't quite match my mental model of the windows I have on the screen. (It could be because I don't maximize most of my windows and have them all overlapped. So at any time I have several windows scattered on the desktop.)
I disabled Static Application Switcher and selected Application Switcher instead. While this preserved the window layout, the animation was jarring. Setting the value of "Zoom" parameter to 0.0 will disabled the zoom effect and everything is good now.
PS: You need to install
compizconfig-settings-managerpackage. After installation open System > Preferences > CompizConfig Settings Manager or run