I would have to agree with Jimbo that Craigs wet sanding is for extreme use only and is not what would be considered regular detailing that you were asking about. I think the steps you have laid out are a great start and exceed 90% of the rest of the cars on the road. However like Craig said it's not really polishing in that the Meg's cleaner polish by hand is so mild you aren't doing much if any correction, if I'm not mistaken it's a chemical cleaner with no abrasives so if the finish is swirled at all it won't fix much.
You really need to consider getting a DA polisher and some medium polish, say Meg's M80 Speed Glaze and step up to machine polishing. Unlike a rotary it's almost impossible to burn through with a DA unless you sit in one spot too long or really roll over an edge with a lot of pressure. The results are worth the investment in time to learn how to use a DA as it's obviously far less work and you can achieve a far better finish than by hand. Add to this the fact that Volvo clear is pretty hard and you really need a machine to achieve any kind of a result.
I started on the Meg's forum as well and used their products. It's a good site with lots of great info but it's obviously limited to Meguiars products. I would recommend
http://www.detailingbliss.com/ or
http://autopia.org/ as detailing sites that discuss everything under the sun not just Meg's products.
As far as what I do it really depends on the condition of the finish. I recently did our latest 240 and the paint was hammered, absolutely the worst I have worked on, swirled, scratched and just plain abused. Here's a rough order of what it took to get it presentable for a DD but not perfect as I left some of the deeper scratches in as they would have required wet sanding and my rotary died on me. All of this was done with a Porter Cable 7336 (same as what Meg's sells, it's a rebranded PC made for them) and would have been much faster with a rotary and a better final finish.
- wash 2x and clay on second wash
- 2-3 passes with Optimum Hyper Compound on a Lake Country Purple Foamed Wool compounding pad
- 2 passes with Optimum Polish on LC Orange cutting pad
- 1 pass with OP on a LC White polishing pad
- 1 pass with OP on a LC Black finishing pad
- washed to remove all of the compounding/polish dust
- waxed with Collinite 476 x2 by hand
- wiped down after wax cure with Duragloss Aquawax
EDIT: Best place to get a DA polisher and pads is
http://www.eshine.ca/, they have the Porter Cable polisher with a backing plate and assortment of pads for $209 and shipping is free over a $150.
Not much for pics but here is a couple of in progress 50/50 shots:

