Villain, BTN: [1000$]. Tight young guy, makes his money playing life poker, currently on a big downswing (20k), which seems to be effecting his play a bit thinking of worse case scenarios a lot. Just calling the 2nd nuts etc... Making hero folds. Capable of bluffing but says he switched to a tighter playstyle recently.
Hero: MP: [850$] YWG, TAG. Villain knows i am decent a play seriously both regs at this casino. Villain has seen me bluff, definalty sees me as a tight player.

OTTH:

2/4/8 (straddle).
UTG+2 limps. I look down at 8Q and limp along (I think folding here is the best option, but the limper and straddler are people I want to play hands with. Villain makes it 48$ on the button and BB + limper call. I call aswell.
Flop [200$] 6QJ, checks to villain who bets 120$ BB and limper fold I call.
Turn [420$]J I check villain bets 200$, I think vs me he would not value bet and weaker hands and keep bluffing K10, AKdd (if he doenst check flop 4 ways) and 910. I tank for a bit and go all in for 580$.

Should I bluff this hand? I honestly expect hero to fold KK, AA and AQ here quite a bit of the time

Looking back at the hand I would have prefered to just fold pre with Q8dd from MP and limp with Q9dd. Same for calling the raise

Preflop: Fold and fold. On button I could agree that you limp (or raise depending on how sticky they are on flops)
Flop: call
Turn: If you shove Villain gets over 3:1 on a call. I don't see this turn shove being profitable to be honest. If Villain is running bad as you say he is I see him checking AK or KT of FD on this turn card. AQ and KQ are probably checked behind also a decent amount of the time. Sure he might be folding AA or KK but if he bets this turn with AA/KK its more often than not with the intention of calling down.

Considering pot size I don't see him folding much on the turn. Also fold pre twice.

To me turn is either a call or fold - all in is the least attractive option. I think its a fold twice preflop, flop is maybe an unhappy call (really a reverse implied odds spot though), and not sure if turn is a call or not. I think a case could be made for calling turn given the additional equity we picked up.

You may want to play more pots with weak players but that should mean adding only a few hands to your ranges to do so. You don't want to greatly compromise your strategy because don't forget, there are other players at the table in the hand too (and even worse we are OOP against them here). I think limping Q8s from MP is taking it too far.

I think limping was fine, but I think folding to the $48 bet pre-flop would have been the right move.

Honestly this looks similar to a mistake I make frequently in cash games. Often times when I limp with borderline playable drawing hands (like Q8s, K9s, 810s, etc), I'll make a call pre-flop just because I see 2, 3 or 4 players that called before me. The pot is big, I have a drawing hand, so I want to play it.

TILT ALARM!!!

Realistically, Q8s isn't a very strong hand, especially in a multi-way pot like this. If a top pair Q hits on the flop, you'll probably put money in the pot. The pot is now inflated. Almost any card that comes on the turn makes for a big bet and tough decision, especially if you're out of position. Unless your opponent bluffed the flop, you're either behind or not much better than a 1:1 favorite. Even if the turn brings a flush draw like in your scenario, your opponent definitely could have played a hand like AXs or KJs - K9s and tried to bluff on the flop. The Jd on the turn brings a prime bluffing spot for villain.

tldr;
The only reason the decision on the turn is difficult is because making that $48 pre-flop call puts yourself into a marginal situation

You called 6 BBs with Q8. You're probably a lot of the reason the game is profitable. Just saying brah. Fold preflop and leave table and don't go back until you learn basic hand values