I think the restos and bars are coming. As for the traffic speed, it'll slow down. It's already dog-slow in rush hour. I've seen it change fairly dramatically over the past ten years or so.
Projects like the bread factory and the revamping of the film lands in and around 629 Eastern (a combination of retail and new office space) will drive demand for local amenities so workers don't have to leg it up to Queen to get a bite or grab a drink. Further east, a big wild card will be what happens to that ginormous postal plant on Eastern, just before Le Papillion on the Park. It's supposedly the country's largest mail sorting plant but rumours are that its days are numbered. If and when that thing goes, watch what happens to that stretch of Eastern. It's super close to Ashbridges Bay and the Beaches vibe and it offers superb access to the Gardiner and the DVP. I'm only speculating, of course, but I note in passing that Loblaws on Leslie at Lakeshore is undergoing a painful, lengthy reno, tarting itself up in advance of other competition slated to go in 629 Eastern (Sobey's? Not sure - my wife and I attended a meeting about the project two years ago but no one was officially committing on what was going in). Opposite the postal plant, I don't think the streetcar barns at Connaught and Eastern are going away anytime soon; they'll be storing a third of the new streetcar fleet, we were told at the last Doors Open, so there's not going to be a Wychwood-type conversion happening here anytime soon.
Still, stuff's happening. Le Papillion has established a beachhead (pardon the pun) a few years ago and they seem to be doing alright; they are part of the changing face of Eastern. Combine that with the mid-rise projects slated to happen along Queen just a bit west of Greenwood and one or two other mid-rise projects a little further west on Queen and you have a good set of conditions to prompt further retail and residential development on Eastern.
Conclusion: Eastern is due for a renaissance.