In answer to the OP, you shouldn't be a full-time Fistweaver. You'll do half the damage or less of a DPS and half the healing or less of a healer. The end result being that the raid gets less than one full raider's worth of healing+DPS from you. If you're the third healer and want in on a fight that only needs to be two healed, you might consider building a WW set and learning how to DPS as a WW. You'll already be familiar with most of the WW toolkit if you understand how to Fistweave.
Just do a Google search for something like "smart heal definition wow". Here's a link. If you read through any number of those links, you'll find that it's defined by Blizzard and the community as a heal that targets the most injured player or players. On the upside, no one will need to know or care what a smart heal is once WoD comes out. Blizzard is doing away with smart heals and making all heals that were smart heals just heal random party or raid members in their range.
The log that was linked is from Norushen, a fight where you get a massive damage and healing buff after you come out of the shadow realm. That's hardly a normal encounter. A more reasonable encounter for healing would be IJ or really just about any other boss fight in SoO.
Fistweaving is an important part of the MW tookit, and there can be no debate that it can be useful when used properly, but it's not like Atonement healing where the priest just needs to Divine Star once every now and then and fill the rest of the time with Smite or Spirit Shell. Hell, there's a raider in my guild who has a priest alt. He's progressing through SoO on a Disc Priest with high haste, and all he does is spam smite. I know of no monks that can heal the entirety or even the majority of SoO using nothing but Fistweaving. To say that monks have a viable means to heal a raid and do respectable DPS at the same time for the entire duration of a fight on the majority of heroic encounters is a flat out lie. It can and should be used during lulls or low damage portions of a fight, but it isn't something that should be used if the raid is taking heavy damage.