If I had a penny for each time individuals and organizations in the planning community called for lands around subway stations to be released for intensification, I might be 30 cents richer right now. Heck, this isn't even only a concern in the planning community. I've read numerous editorials in the major papers about this issue.
I agree that the midrise intensification along the entirety Eglinton Avenue is the right approach. However, in the blocks surrounding major transit nodes, we should allow intensification greater than the 25 metre limit that Kennedy/Eglinton is capped at, to better take advantage of the excellent transit facilities in the area. This is more or less what happens at Yonge/Eglinton and Sheppard/Yonge: mid-rise intensification increasing to high-rise intensification as we get closer to transit nodes.
I don't see any benefit to capping Kennedy/Eglinton at 25 metres, short of satiating NIMBY concerns.