Yeah you got it right, anything i drink i dilute back down to 40-45% or lower if its a liqueur. If i'm using it as a solvent aka for shatter/wax, then i keep it at whatever high proof i have 90+%.
Typically i save and use my heads for making waxes but the heads contain methanol which comes off your still first at (65C or 150F), and is highly poisonous if consumed straight. So when making alcohol to drink, you always want to throw out the first bit that come out of your still to be safe, or save it and use it as a cleaning solvent like i do.
Now when making waxes with it because im evaporating off all the methanol and ethanol used, im not risking any chance to poison myself as its just not there anymore, and you would actually have a higher risk of methanol poisoning from drinking wine and or beer, but mind you will get alcohol poisoning first before methanol issues.
But if you ever heard or wondered about the old folks tales of people going blind or dieing from "moonshine" from prohibition era, its because they were either drinking the first stuff coming off the still's and or unsavory types were mixing in methanol to raise the proof of their spirits to get more money when they sold them, obviously not wanting return customers.
Adding more of any fermentable starch or sugar will increase your yield, White sugar is usually the cheapest so when doing fruit batches i typically use quite a bit of sugar as well, cause it raises the ABV of your starting wash.
Now it can only be raised so high though as after a certain percentage yeast starts to die off, and or produces bad flavors. Reason to stay away from the turbo yeasts, as they just stress the yeast out due to the higher % causing a lot of bad flavors to be made. Practically wise having your wash finish under 14%abv (1.096 starting Specific Gravity) will prevent the yeast from being too stressed, i typically do 10% (1.065 starting SG) washes myself as they finish out quicker and prevent less off flavors.