1.) I found a canvas API called EaselJS, it does an amazing job of creating a display list for each elements you draw. They essentially become individually recognizable objects on the canvas (on one single canvas)
2.) Then I saw on http://simonsarris.com/ about this tutorial that can do drag and drop, it makes use of a hidden canvas concept for selection.
3.) And the third approach, a working approach, http://www.lucidchart.com/ , which is exactly what I'm trying to achieve, basically have every single shape on a different canvas, and use to position them. There's a huge amount of canvas.
The question is, what is the easiest way to achieve interactive network diagram as seen on http://www.lucidchart.com/
A side question is, is it better to get text input through positioning on canvas or using multiple canvas (one for rendering text) as in LucidChart