On my projects my goal is always to bring the original paintwork up to the highest level I can. Part of this might involve touching up nicks and scratches, but the real magic can be achieved with a process similar to cut 'n buff, which I learned as "color sanding." The concept is the same, but the idea with color sanding is to remove just enough damaged paint to get down through the decades of scuffs, surface scratches and environmental damage — sun, pollution, petrified bugs, whatever.
After cleaning the part to be color sanded, I fill a small, clean pail with fresh water with a few drops of dish soap added. With frequent dippings into the water, I gently wet-sand the entire painted area then wipe dry with a clean cloth to check my progress. A deeper scuff may require a stronger grit, remembering that the goal is to achieve the greatest effect but without sanding through the clear coat. This is especially true with pearl paints because the pearl coats are applied on top of the color and sanding away the pearl changes the hue of the finish color. And, I have to accept that some "patina" just can't be sanded away, but in any event the piece as a whole will end up glossier with more vibrant color — hence the term "color sanding."
Practicing on an old part will give a good feel to how much sanding you can get away with before damaging the part with excessive sanding.
Below are a couple of examples of common fairing scuffs that will come right out with a gentle sanding.
(click on images to enlarge)