I have not cycled the island but have driven most of your proposed route a couple times.
- for camping, check out the provincial parks. Specifically, stamp river, Englishman river, little qualicum, miracle beach, and rathtrevor beach are all good spots on the island. On the Sunshine Coast, check out Okeover arm, saltery bay, porpoise bay, and Roberts creek. The national park at long beach is also great but usually booked months in advance.
- I'm not sure about your route from port Alberni to Courtney. I would suggest going right back out to the coast and then taking the old island highway. It's right along the coast and far more scenic than the road you highlighted. To be honest, i am not even sure that one is paved.
- a couple worthwhile side trips: take your bikes on the water taxi from Powell river to Savary island. Only a couple of roads but amazing beaches and incredible scenery. Also check out the skookumchuck narrows near Egmont/earls cove.
The trip out to Tofino is amazing by car. Suicidal in spots by bike. Narrow to non existent shoulders and blind curves. Be prepared to take your lane and ignore the pissed off drivers for a few minutes at a time. If you do get out there, also check out Uclulet and the Wild Coast Trail.
i hope this helps. Happy touring.
RKD