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I asked a similar question in TeX.SE and I am not 100% happy with the answers. I find it strange that there's no standard formula that yields the "right" font size given the page's size. Therefore, I'm going one level above --- leaving the practical TeX world --- and try to find a general answer. I know that it is desired to have 65 +/- 15 characters per line. Is the only way to achieve this is to iteratively improve the document?
I hope that my question makes sense...
It depends on a lot of variables including the context in which the text is being used and with the message that one wants to communicate which also ties into which typeface/font is selected. Generally most body text falls between 10 to 14 pt. Ultimately though there is no "perfect" font size for a given page - as Robert Bringhurst notes in his seminal book, "The Elements of Typographic Style", "Principle 1.1.1: Typography exists to honor the content." Therefore the font choice, size, leading, and lineheight choices should be based on the content and the desired impression/message you wish to communicate.
