Now I am confused. I understood when the ACR sharpening was equivalent to Pixel Capture sharpen, but what am I supposed to do with output sharpening in ACR? It seems to go against the "sharpen for print at output size and resolution" theory
Kind of if you're going to mess around with the size and such. The idea is, you're going directly to print from here, you've set the size etc. So yes, if you're rendering the largest, say native res for subsequent work that may be output at differing sizes, you don't want to output sharpen out of the ACR gate. But if you do, pretty useful.
Now if we could just feed this to a smart print engine in Photoshop (ala the Print module), that be pretty cool. But then we do have Lightroom.