I am always amazed at how opinionated we mothers can be about sleep habits....some of us let our babies cry it out while others think it's cruel. And yet, we all have healthy, well adjusted, smart little ones who know they are loved.
You have to use the sleep method that is most comfortable for you and your family. Is letting your child cry it out okay? Yes, as long as you set limits before hand, you know you will check on her at specified intervals and try something different if, after a specified amount of time, she does not soothe herself.
Is going to her for every peep she makes okay? Yes, if you feel that is best for your child then, by all means, go to her. Your child will need you for soothing when things don't go her way during the day, but she is young so that's fine.
Either way, as long as you love your child and care for your child (which I can tell you do), your child will be fine. It sounds like you have a great routine down for the CIO method and I am sure, once your little one is on solids, you won't have to worry about her sleeping.
I have four children and have tried the CIO method and the run to them every time they cry method. And lo and behold, I see no difference in the stability of my children. They are all well rounded, happy, loving, and caring individuals!
As far as co-sleeping goes, that is also your choice. Your relationship with your spouse suffers a little during those co-sleep years because you have to make time when you are alone to "get together" but, if you are both willing to co-sleep, your baby will be fine. If you don't want to co-sleep, your baby will be fine as well. I've tried both methods here as well and I see no difference between the children as they grow. In the grand scheme of things, the fact that they slept in the same bed with me or not didn't make an ounce of difference in how they felt about themselves growing up!
I think we are all just being a little too judgemental here instead of realizing that each mother has her own instincts and will raise her child the way she deems best. Neither way is wrong, you just have to pick what is right for you!!! And by all means, let's not look down our noses at others just because they chose not to do it "our way"!
B., you seem like a very sweet and loving mother. You do what you think is best for your little one. You know in your heart what your child needs because you know her better than anyone. Trust yourself...you're doing great!!