<p>What do you find is the optimal setting for mysql slow query log parameter, and why?</p>

Whatever time /you/ feel is unacceptably slow for a query on your systems.
It depends on the kind of queries you run and the kind of system; a query taking several seconds might not matter if it's some back-end reporting system doing complex data-mining etc where a delay doesn't matter, but might be completely unacceptable on a user-facing system which is expected to return results promptly.