I am on the fence in this matter. On one hand, interests of one small city block must not overwrite the massive transit project, immensely important for the whole city. People living at the edge of downtown core, and near the busiest train corridor in the country, have to accept the fact that the city will build more infrastructure and some of it will be located next to them.
On the other hand, if the provincial government was going for the optimal capacity, rather than just enough for the first 15 years of service, then the line would stay under Queen in order to afford more capacity. And we wouldn't be having any Leslieville debate. Appeasing the locals isn't the main goal here, but it would be in match with the sound long-term capacity planning.