1/8 turn open sounds a little on the lean side, but may be fine. I usually open to 1 or 1 1/2, then lean it out (clockwise) until it backfires [lean sneezes] or dies, then adjust counterclockwise until the engine slows/stumbles -- final adjustment is the mid point between the two. I usually find that to be 3/4 to 1 turn open from lightly seated, but motors vary. You should find that rpms increase when you set the lean adjustment, and you would use the twist grip to throttle it back to about 650 rpms -- afraid I do that by sound. You need a mix setting that allows you to go into gear without stalling, and also to rev the motor (do that with care if in a barrel -- don't need to hit WOT to test the mix setting for throttle operation. When on the lake, can run to open throttle then check for return to idle -- should not stall.)
You raise an interesting question on the 650-700 idle rpms -- don't think that's with the throttle plate opening (i.e., roller past the cam mark), but not sure. That target idle range is with the motor warmed up and in gear, as I think you suggest, and I'm thinking that would be before throttle up. The starting position would typically be at a faster idle (throttle slightly open), although with a warmed up and well-tuned motor it will start at a considerably lower idle.
(interesting exercise to think through what is done sort of automatically....)
For trolling you can use the throttle stop like Hardwater suggests. There is also friction control that can be purchased if a serious fisherman (operates with a thumbscrew) -- about $30 I think.