There are plenty of people who sharpen for web, in fact if you look at flickr or this site (or just about any other forum) you see people preference for sharpening is very much like yours, mostly more then you probably want to sharpen as there is ALOT of oversharpened images with halos presented on the web.
I do sharpen my images for output, but i rarely do it for small images that is presented on the web.
I dont use Canon software (or any Canon hardware for that matter) i use LR3 and PSC5 mainly. Raw sharpening is a whole other chapter. .-)
As for selective sharpening, its a matter of preference and workflow. I dont do it, my lenses takes care of that. 
There is no right or wrong, you should take my my comment as a little bit of jousting.... This is after all a Canon forum is it not.. 