What is YOUR thoughts on the best tool rest height?
I'm not sure there IS a best tool height, at least not for me.
I haven't given it much thought, but like others, adjust the tool rest often. I might start by setting the height based primarily on the thickness of the tool, or rather, the distance from the contact point with the tool rest to the cutting edge (easy to see in something like a parting tool), then make small adjustments as needed for the cut that feels the best. Some of it may depend on how
I feel, if my back or shoulder hurts!
I think a lot of the tool presentation, and therefore the rest height, depends on the grind.
In thinking of it just now, and using the parting tool as an example, I'm pretty sure my methods changed a bit when I started grinding the diamond parting tools this way instead of the "normal" way. This grind changes the geometry. I'm still experimenting with variations - so far I like the one in the front the best for efficient peeling cuts.
But with scraping cuts, I use this grind exactly the normal grind. Both function as negative rake scrapers. I often hollow and smooth end grain with NRS, for example I use that same diamond parting tool to hollow the bell for handbell ornaments, tool close to horizontal - the cleanest, quickest, easiest, most foolproof way I've found. FWIW, this bell is Dogwood, turned last night while prepping for a demo.
Of course, for scraping anything with NRS I set the rest so the cutting edge is right at the center of rotation.

(Robust rests, always!)
Interesting topic. I need to pay closer attention while peeling and compare this grind with some similar parting tools still ground with the normal shape.
And pay more attention to tool rest height with other tools - spindle gouges and skews. I frequently adjust the height and distance those and other tools, depending on the cut that works the best for that piece of wood.
I typically hone in on the rest height while making the rough shaping cuts, then leave it alone for finishing cuts with the same tool. For example, while rough shaping this African Blackwood handle I set the tool rest height to what felt "right", whatever that means.
This is the first finishing pass on the handle - all cuts with the small Hunter Hercules. (Sorry, part of the handle is a bit out of focus - I didn't notice the camera autofocused on the lathe bed!)
Tool rest heights and shaft angles are likely different for other tools and applications, such as typical hollowing tools in a vase, gouges on the inside and bottom of a bowl, etc.
Note to self: pay more attention.
JKJ