I'd love to see this horror finally get erased from sight. I wouldn't mind seeing some significant height here towards the north end of the lot, but not more than about 5 or 6 stories directly on Queen. Let's expand that skyline eastward!
I can easily see some new office towers there. The location would be much better than, say anything south of the railtracks, the so-called "south downtown", as it is downtown and 5 minutes walking distance from Queen subway station and Eaton Centre, and the Bay.
Given the size, the potential is huge. I'd also like to have some large scaled retail in that block, rather than another 30 story tall condo. At present, there is hardly anything to see or do downtown east of Victoria st, which is almost dead north of St Lawrence Market and south of the Wellesley Village. The development can vastly transform this area, bring life to Queen East on both sides as well as Shutter St, where there are some condos to be under construction, and greatly expand our downtown core. Retail/business should expand eastwards, not south and further west, as it will be further away from the subway line. Also the potential DRL will likely go under Queen East as well.
Like the area between University and Spadina, downtown between Yonge and Jarvis should be full of life and footsteps. If Regent Park can be revitalized, I can't see a reason this area can't.