Good discussion. The information in the factory service manual is also pretty detailed. I'd suggest starting with the values in the service manual. I've found it easier to start working with the front forks first, and once they are sorted to move on to the rear. I'd also suggest when making compression and rebound changes in the forks, make a significant change, like 4 or 5 clicks to see what effect it has. That should tell you which direction to go. Then you can refine it in smaller increments. It's pretty hard to tell any difference in a one click change. It also seems simpler to me to work with the front compression adjustment first. I reduce it in stages until it gets close to bottoming on extreme braking, and then add just a little back in to have some margin. You can then work on the rebound setting. I keep backing it out until the front end starts to feel a little unstable under hard cornering. On a race bike, that might be where you want it, but on a street bike I crank in just enough rebound to make it feel solid in the corners. At the rear, I also work on compression first, mostly putting in enough that the bike doesn't squat too much under hard acceleration, but not so much that it kicks me off the seat in the bumps. The Ohlins rear shocks only offer 4 clicks of total adjustment, so it's pretty easy to find the best setting. With the stock stiff springs, unless you're carrying a heavy load, you'll probably end up with 4 clicks out, the minimum amount of compression damping you can get. With a passenger and/or luggage, you might need more. To sort the rear rebound setting, I have a bumpy road I use for testing, and I mostly just play with settings until the bike feels like it is tracking the bumps as best it can. With too much rebound damping, the rear will pump down over a series of bumps, and feel really harsh. Might even feel it loosing traction as it bounces off the bumps. With too little rebound, the rear end feels like a pogo stick.
Optimizing suspension settings is really an iterative process. You start by getting the sag settings somewhere in the acceptable range, then work on damping adjustments. But you might later find yourself changing the preload settings for one reason or another (heavier loads, more or less squat or dive, or softer in the bumpy stuff, or more stable at high speed on smooth tracks, or?), and then you might have to revisit the damping settings to suit. There really isn't any "one size fits all" setting. Getting the fine adjustments right depends a lot on both how and where you ride. The right settings for a track day addict aren't likely to be the best for touring in the twisty mountain roads or freeway flying with a passenger. In the end, it comes down to what works for you.
Fortunately, on a street bike, you can play with the settings to your heart's content with no risk to life and limb unless you really push the limits. It gets a little more critical on a race track.
Lots of good reference books out now on sport bike and race bike suspension tuning, for anyone who is really interested. And they mostly agree on the basic principles of suspension tuning.
At least we don't have to worry about having both high speed and low speed damping settings to adjust, like the high end race (and some street) bikes have. I'm not sure I'd ever get that all sorted out. Actually, I'm not sure I really have it sorted out with what I have now. But it's kind of fun trying, and unlike engine mods, it doesn't cost anything.
Ken