1. production or prototype. If ad hocking something as you design/debug, then lower temp would be preferred to prevent oxidation while the iron is NOT soldering. Even if it takes longer to reflow the joint.
If doing production soldering you will keep the iron busy with less downtime, so higher temps will be more practical and efficient. You may also be doing many similar joints, so you can fine tune the temp for the best efficiency. In prototyping or repair work, you may choose a setting that is closer to good for "everything."
2. tip type. If you use a small pointy tip, you will need higher temp. If you test the temp of Metcal tips, you will find this is why the temp is listed as a range. The pointy tips have a higher setpoint than the fatty tips from the same temp rating category.
3. PCB type. Multilayer with internal ground planes? You will be bumping up the temp
That said, I keep my iron around 315C-325C for most things, using a 2.5mm bevel tip and working on 2 layer boards. And in short, the exact temp is a tradeoff between time to flow and rate of flux burning and oxidation/crusting of the tip (because this affects how often you need to clean and retin the tip, slowing things down).
heating of ~300C makes it less risky when repairing vintage PCBs which may not be in great shape and require lots of care when performing maintenance.
"Damage to components" is pretty low down in priority in the temp I choose. Most stuff, dwell time is all that matters to limit heat to the component. I have experienced heat damage (to tiny SMD resonators which the datasheet showed in hindsight are super sensitive), and that was due to oven reflow.