Thanks guys!
So it seems I bought the wrong tool for the job :-(
Before buying it I read that it accepts all kinds of lenses and that it would do an excellent job of capturing the image.
The 55-250mm is about Canadian $210-300, so it is still a cheaper upgrade than buying a new camera.
Next time I guess I should use the Av mode and hopefully get to see the eyes of the bear in my next picture. Still would the camera know I am focusing on the bear if 8 out of 9 focusing points are on the background, and only the center one is on the bear? (I know I have a lot to read)
Any cheaper upgrades (than $300) for someone in my situation?
I was told what I had in the picture was a trophy bear, so it is not very likley to get another one like it to pose for me soon. I should be able to make the most of those fleeting moments.
You didn't buy the "wrong tool" for the job, you bought a very good camera with a very good lens. That doesn't make it the right tool for the job. What it does make it is the only tool you have available for the job and it's not that well suited to wildlife photography at the present time.
One problem you might easily encounter though is the SL1 is a very small and relatively lightweight camera body. This makes it a bit less balanced as you begin to add longer and heavier zoom lenses. Most student photographers have a difficult time hand holding a long lens on any camera and, if the camera and lens are unbalanced as a system, the job gets even more difficult.
A tripod/monopod is still a good addition to most photographer's equipment list.
I would repeat my earlier advice though; it is not about the zoom power of the lens but rather about getting as much of the subject on as many pixels of the sensor as you possibly can.
I would not place blame for the results of your sample shot on the equipment.
You do not have a great understanding of how photography works, which is a fairly common occurrence with your first DSLR. Comments regarding the image quality of your shot have more to do with you learning more about photography in general, how your camera works specifically and to a considerable amount learning what wildlife photography entails.
Taking a shot of a subject standing still in the middle of the day isn't very tough when it comes to wildlife photography. Please read the comments regarding you shot once again. They are meant to teach you about using your camera properly for the situation and not about you buying the wrong gear.
Everything you do with your camera is based upon knowledge of the camera and the processes involved in the type of photo you're after. Learn your camera extremely well before you venture into specific categories of photography. Learning the camera first will make learning a specific genre a softer curve.
" ... would the camera know I am focusing on the bear if 8 out of 9 focusing points are on the background, and only the center one is on the bear?"
The camera only "knows" what you have instructed it to do. It's your job now to learn how to use your equipment.
There are alternatives to a zoom lens - even 250mm isn't going to up your keeper rate when you place yourself in a situation where you must maintain a greater distance between the camera and the subject.
Unless you are only interested in photos of animals at rest, you must also consider the "speed" of the lens, not just the reach. With wildlife you are also likely to want a rather fast autofocus and a manual focus override which is easy and simple to operate. That costs money. As light levels drop, the cost of the equipment required goes up. Most wildlife won't bother to stop dead in their tracks in the middle of the road (in the middle of the day) for your shot.
And, remember, it's all about the number of usable pixels.
So, yes, you have a lot to learn.
It might be a good idea to realize most "dedicated" wildlife photographers would probably tell you their investment in their camera and their assortment of lenses has reached well into the thousands of dollars. You are not going to equal their results with a SL1 and the kit lens. The best you can hope for, IMO, is to learn the numerous techniques which will allow you to make the most of the gear you own.
Your present shot is not a throw away by any means. Learn how to process your photos and you will be able to achieve a pretty usable image overall. One thing about digital photography; the shot is never finished by snapping the shutter.