I recently compared two prints of the same image: one was printed at the native resolution (240ppi) + output sharpening and the other was up-sampled in LR at 360ppi + output sharpening. I personally found that the up-sampled print had better detail.
240 isn't the "native" resolution, it's just the default of lightroom. I think the consensus lately is for an epson printer setting at 360 ppi will yield best results (which you discovered with your testing) unless the file itself is large enough that it would need to down sample. In that case, I think most are finding setting to 720 ppi and then enabling the Finest Detail option in the driver can yield best results (although 360 will certainly look great as well)
I agree with Nigel's comment ... if you feel standard is too much sharpening I believe you are over applying capture sharpening. One problem with too much capture sharpening is you normally get very poor results when down sampling dramatically, such as for web images.
It's easy to go too far with capture sharpening, since the implication is visually you are making it sharp. Capture sharpening is best used to restore softness from things like the AA filter etc. but typically is quite subtle - no obvious halos.
Output sharpening is based on achieving specific width halos at contrast edges based on detail size, print size etc. Most of the time output sharpened images on screen look pretty crunchy and using the screen to determine the right amount is basically guessing. I believe the idea of the 3 levels of sharpening are to allow variations of sharpening based on the image content itself (lots of important micro detail, micro detail not so important, no micro detail) which is something you would try to do on your own if doing output sharpening in Photoshop. Output sharpening has to based on the final image going to the output device, where as the other two or based on the file itself. Different size prints require differing amounts of output sharpening, thus lightroom takes the work out of all that by allowing you to have one master file that is sharpened at output time based on the current settings rather than creating a resized file for every size print and then sharpening it appropriately.
I feel "competent" at doing this, but certainly haven't mastered it yet. I am working through Bruce Fraser/Jeff Schewe's book for the second time (real world Image Sharpening) and I think the Lightroom 3 videos as Camera to Print (and assuming the new Camera to Print and screen when that segment is released) have some good info on sharpening (as well as all aspects of workflow).