First off, if you want to get the most out of this "wee vice" as it is known in some circles, it's fine to seek out the knowledge of others, but you need to experiment to find out what works for you.
In my experience, "how dry" depends on the type of blend. Since I mostly smoke Virginias and their variants, well dried, but not dried out, tobacco works best for me, as too much moisture masks flavors. I prefer most of my Virginias at just shy of bone dry, dry to the touch when squeezed, no sensation of moisture rising against my skin when squeezing a pinch to test for moisture. The tobacco might be a little crispy at the ends, but still pliant and not dried to dust.
English, Balkan, Oriental blends can be smoked straight from the tin, as their highly aromatic leaves produce plenty of flavors regardless of moisture content. These blends are the easiest to smoke and the most forgiving of a lack of technique. Dried down they will also give more detailed flavors, but they are flavor bombs to begin with. These blends are the easiest for the beginner,
OTC's are generally fine straight out of the tin. They were formulated for to be enjoyed by people who don't go in for all "that thar fussy stilly stuff" and deliver the gods with no fuss or muss. Also a perfect genre for the beginner and just about everybody.
Aromatics and semi-aromatics, which these days refer to blends with very noticeable toppings, often of fruit, vanilla, rose geranium, etc, are probably the most difficult to get right, despite their long standing status as a "beginner" genre. The trick is to find the level of moisture which preserves the flavorings while reducing the goopiness, and possibility of tongue bite. Since the base of these is mostly Virginias, I dry them down until the toppings are more like a reduction than a broth. Dried too much and the toppings are dulled down.
Different blends respond differently to changes in moisture, prep, packing. With every new blend that I try, I experiment with it to find what offers the best experience for me, generally starting with something that has worked well for me before and then doing a "ring around" around that "preset".
Another thing to keep in mind is that different labels tin at different moisture levels. Most of the Hearth and Home line are tinned at what is thought to be the ideal moisture level of about 10 to 12 %. Other labels add much more moisture in the tin with the intent of preserving the contents from drying out before being consumed, some because they believe that the water has a beneficial effect on the properties of aging, and still other labels tin at a variety of moisture levels.
It's good to ask questions, but you'll need to experiment to find useful answers.