I am also quite interested in responses to this question. While I am often tweaking my TT position, it is adjustments to the angle of my aerobar extensions and elbow pad width that I most often fart around with.
If they don’t chime in I think that they would agree that it depends on the individuals body shape and range of motion. The most important thing for speed is narrow and low for a low frontal area. Some guys can do this with their arms flat which for most, I have heard, is faster than the hands up position. Think Dave Z. Some tunnel results have shown that the hands up position is faster for them, but Im told this is not the norm. Think Levi. I actually have a hands up to relieve the strain associated with being narrow, which allows me to be in the bars longer producing a lower/narow position for a longer period of time. So comfort has to play a role. If you have a really low narrow position that is very aerobut you can’t stay there, it’s not worth it. Hope that’s a good start.
Unless (and only if) you go to the windtunnel, arms within about 2deg up or down seems to be pretty much the same. I believe this is what Dr. Coggan found with his wife in the tunnel. She had pretty much within the accuracy of the balance whether her arms were ~2deg down, level, or 2deg up.
I find having my arms basically level but with my wrists cocked down to be the most comfortable. I know many people don’t like bending their wrist like this, but I think it helps me engage my core better, not for more power (i.e., I don’t pull against the bars), but I think I am more stable in the saddle.
John and I have worked together on this, and I think I’ve found a position that feels good and is reasonably fast. I’ve not been to the tunnel, mostly because I’m afraid I’ll start chasing drag, and forget that it’s a triathlon, not a track race.