Note that although this graph fits the average competitor there will be instances of outliers, the orange section will cover the vast majority of these however some people may deviate so far from the norm that they are not represented by the graph.
Generally limb length and frame correlates with height massively. This does not always reign true though and in some rare cases a persons height may not reflect general limb length. For example a 5'8 man that has long arms, thick legs and wide shoulders would likely carry more bulk than an average sized man of the same height and would likely benefit from deviating one weight class up from an average example.
Strength and physicality has to be considered when picking a weight class. If you move up a weight class you will fight against physically stronger, more powerful opponents and without a sufficient level of strength you may find yourself dominated. Conversely if you choose to move down a weight class it must be taken into account that some strength will be lost, cutting can be hard on the body and that your new competitors will likely be more agile with a higher pace. In essence it is very important to take physical preparedness into account when choosing a weight class.
Finally training level must be taken into account. A yellow belt in their second competition should choose their weight class differently than a national level black belt. I would recommend beginners to fight at their natural weight with the exception of people whose natural weight sits at the very bottom of one weight class. For example if your natural weight is 74kg it would likely be unwise to compete in -81kg unless you intend on gaining significant musculature, it would likely make more sense to cut the 1kg to make it into -73kg. It is however somewhat insignificant for beginners to fret about weight class as at such a level competitions should be treated soley as experience building endevours. Intermediate competitors are what I would define as green-brown belts that have competed atleast 5 times and have advanced to a level they are competitive in local open competitions. At this level a competitor should begin to consider cutting weight and have a strategic natural weight. For example a -81kg player may sit at 84kg naturally and do a small cut to make weight. Advanced competitors similar to intermediate should have a strategic natural weight however they can afford to deviate further from the weight class limit due to experience in weight cutting and recovery.