Hi Rock_jock, let's see....
1. You may destroy the bullet (or casuse jacket/core separation) because of too much centrifugal force.
2. A fast twist is hard on the rifling, but muzzle velocity is the same.
3. For military use "...you ideally want a twist rate that is fast enough to stabilize the bullet in flight, but slow enough that it becomes easily destabilized when it enters soft tissue, thus tumbling and fragmenting to create a wider wound channel". This may be right (even though the military use a very fast 1:7 nowadays), but I think that this effect also depends a lot on bullet construction.
4. As explained before, overstabilized bullets don't "track" well, but this is only important at long ranges.
5. Another very important factor: upon firing the bullet is forced to rotate around its geometric axis when travelling inside the barrel, but all bullets are slightly imbalaced, and when flying outside they rotate around their true center of gravity (CG).
Due to the small CG offset a tangential velocity component is produced, and manifests itself as a lateral drift velocity when the bullet exits the bore. The distance that the bullet will deflect due to this drift is proportional to the CG offset, the muzzle velocity (the real one, discounting the small increment due to muzzle blast), and the time of flight to the target, and inversely proportional to the twist rate (muzzle velocity and twist rate determine the lateral drift velocity).
An overstabilized bullet exagerates this lateral drif effect; a 1:8 twist will produce a 50% larger deflection due to bullet CG imbalance than a 1:12 twist (provided of course that 1:12 is enough).