Yeah the lower the rotation your wheel has, the higher you want wheel compensation. This will allow for the wheel to not be so sensitive and twitchy at its centerpoint, as well as not be tooo crazy when trying to countersteer. Having it at 1.00 is what you want. It gives a smooth amount of centering, while a high rate of turn when nearing each lock point.... best for when trying to catch a slide right away. Because if it is too sensitive and you need to catch a slide, you will most likely countersteer too much and be out of control. LFS works best with a smoother steering setting for precision and gradual control for slides... you don't want something snappy that results in too much back-and-forth steering.
With higher the rotation, you may want to turn it down a bit (or a lot). As this will "connect" LFS better with the true speed your steering should have... and be more responsive for many situations (like turn-ins and countersteering).
When I used a fixed rotation wheel, I found that I would be switching between 0.50 and 1.00 depending on what car I used (like formula car versus road car (or better yet, MRT which is very twitchy))... AND how the setup is made (eg Anti-Roll Bar being light, resulting in sluggish steering (would need more immediate response from my wheel) and vice versa).