Hi Jamie
Faced exactly the same issues with mine. Still working on it, but worth the effort. But it depends if you are trying to bring the paint back or want to 'seal' the bleached look. Others with the bleached look will give you some pointers I'm sure
Mine didn't have much bleaching it was just tired and not a lot of gloss about so this is what I did.
Some areas I've worked by hand and other times with a DA machine which doesn't get the paint surface as hot as a rotary machine - but again being careful with the pad selection. I also did check the paint depths to see where it was at its worse so had to be very careful where it was even thinner
Claying with Dodo juice Born Slippy lube really helped to pull away a lot of the contaminates and then Dodo Juice Prime Lite to clean up the paint work as it doesn't have any harsh abrasives in it. Dodo juice prime is a great product but it does have abrasives in it whereas the lite version doesn't. Great products Dodo juice and they smell good.
I'm about to try another product called Iron Cut that has had great write ups for really sorting out key areas before you start polishing and waxing - but it stinks to high heaven and again have to be careful just where it used especially where the paint may be already blistering as it could make matters worse.
Because the paint layers are pretty thin you are right most of the specialist polishes and cutting compounds are too harsh and could remove too much paint so I've found another company called Gtechniq
http://www.gtechniq.com/shop/3s-for-cars/ who makes some pretty amazing products for both polishing and protecting paint and other surfaces. The way water beads off the surface is amazing
Found some other great stuff for the chrome as well if you have much of that to tackle
Part of the secret is only working one or two sections at a time and not rushing it.
Now the real anorak part - Don't undo all the hard work you have done by using a sponge and one bucket when washing it. As all that does is add those horrible swirl marks. Far better to use two buckets and a wash mitt, one with the shampoo in it, the other with clean water to swill your wash mitt in before you put it back in the shampoo bucket and then on the bus - saves an awful lot of fine scratching
Just take your time and then stand back and admire your work ... 8)