Agree with his positions or not, you have to admit that Adam Vaughan is a rather brilliant politician. This advisory panel is going to be his example, so that he can say to Queen's Park "see, the city of Toronto can do its own planning, free us of the OMB". He's obviously been planning this for quite some time.
I was formerly an enthusiastic supporter of this proposal being built as-is, but these recent developments make it seem like compromise is the best approach. I think keeping at least the facades of the warehouses would send a message to developers re: heritage protection (that they can't just knock down whatever they please). Not that these warehouses are worth keeping; they're unremarkable, their facades have been destroyed by layers of paint, and they create really terrible streetwalls. If they are maintained, Mirvish would be forced to improve on their street presence to make the real estate appealing to commercial tenants. In that case, the warehouses would certainly be worth keeping.
The density arguments against Mirvish-Gehry have been thoroughly unconvincing. People claim that residents will overburden the TTC. Obviously these people aren't going to take the King streetcar to the Financial District, they're practically in it, they're going to walk. If they have to go to Mid- or Uptown, they're going to take the subway, and they'll be going in the opposite direction of rush hour traffic, so they're not really contributing to crowding there. It's TWO BLOCKS from the subway and downtown; if we're going to be building towers, it should be here, not at Kipling.
I think that the public amenities included in this proposal are great. OCAD(u) is a great influence on the city, and expanding their presence and capabilities is definitely a good thing. A new art gallery is also great (even if it exists just to stroke Mirvish's ego!). It's a shame to lose the Princess of Wales, but Toronto has reached theatre saturation, and besides, theatre isn't very accessible to most members of society. I won't wax poetic on how great Gehry's architecture is, but it is noteworthy that none of the green box condos have a public art gallery or university building in them.