Yes, I do not mind this little retail atrium at all. I do not think it will "suck the life out of Yonge St." In fact, it could do just the opposite if the retail is unique enough (and people are looking to get out of the cold or heat). It looks like a decent space....that still contains the same amount of retail that would exist if there was no atrium. I do not see the dangers and I like the potential upside.
But I have serious doubts that this will get built as proposed. We have seen this (value engineered) movie before.