Agree, full name and address details only on the inside of the bag and the side pockets of the bag, I just put a sheet of paper with my info printed on it. Any legitimate person will find that and use it.

Also anything on the outside (as mentioned) can easily be ripped off, and this includes also hanging info tags.

To make the bag identifiable (easy to see on the belt, discourage others taking it on purpose or by accident) I put colorful (last time I used yellow) strips of duct tape on the bag (both ends so visible from all angles). The duct tape looks pretty nice but also seems like some repair was made to the bag, making it less interesting for thieves.

A big roll of color duct tape costs only a few dollars/euros and you can use it for many other uses as well.

Some people use "travel stickers" on their bags for identification, but I think that indicates you thought about it or have traveled a lot, so the bag might feel more "valuable" to a thief. Something that looks a little like repair is probably less inviting.

One time my checked-in bag was delayed and they were able to input into their systems "black bag with yellow details". Don't know if that helped find it.