I NEVER ONCE wrote that we shouldn't build transit in the suburbs! YOU KNOW THIS! You've continually insulted me each and everytime I've brought up the merits of light rail supplemented with RER. Recall claiming how those modes are "cheap"?
As well, I continually predicted that we wouldn't stop sprawl, and that York Region would plow forth regardless of a subway. You responded to this with lectures and puffery about how Vaughan/YR is commited to P2G and GGH Greenbelt because they're at the "leading edge", "in the game", "ahead of the curve", "paradigm shifts"
I didn't even insult you today; you just need to relax.
That said, you don't win any awards for predicting the non-demise of sprawl. The point of P2G was never to STOP sprawl bur rather to curb it. Markham is ahead of the game; Vaughan rather less so.
You keep treating it as a zero sum game. These municipalities can build amazing, sustainable, transit-oriented centres and still "sprawl" at the fringes. Indeed, that's pretty much the plan.
Richmond Hill isn't the only community growing at a fast pace - what's so special about it that it requires such special treatment to the point that nothing but GO linkages is insufficient?
That its development is contiguous with Toronto and that its GO line (unlike, say, Lakeshore) dives into the Don Valley and therefore is only useful for trips to Union? These facts are all repeated ad nauseum here. If someone was suggesting aurora, on the other side of the moraine, that would be entirely different. So would Milton, which is also growing at a fast pace, but I think we all know why RH is in contention for a subway + GO and Milton is just GO, right? Plus, geeze, it only goes like 50m into Richmond Hill.
To answer your question in one word: Context.
Err, no, read the report in more detail - it pays for the water (i.e. service) AND the capital works (and even accounts for replacement costs), which is needed in order to increase the supply. It's analogous to finite transit transit capacity that has to be expanded in order to provide additional services required by another region.
No, it's not analgous but we could drive ourselves crazy trying to compare water to a choo-choo and fail in the process. (For one thing, water is not as finite as a subway train.)
Part of your semantic issue here is calling York Region "another region." It's not. People commute, by the 10s of 1000s, between York Region and Toronto every day and they use streets and transit belonging to both municipalities. All it is is another municipality, which really boils down to "another tax base." So all that's needed to resolve your conundrum is a regional tax base for funding capital and operating costs in the GTA which was the point of Revenue Tools, which was one of Metrolinx's mandates which, yes, has been shelved for now. But it's not like no one has thought of it, at a broad scale, as opposed to on a piecemeal, project-by-project basis.
The scenario, as you paint it, is basically a race to the bottom with individual municipalities quibbling about whose residents are taking up capacity on whose system. I regret mentioning the Gardiner toll example - but it is patently absurd on many levels. To cite just one, not only are only 3% of commuters using the East Gardiner, most of those are from the 416, not the 905. So how many pieces do you want to chop our water-like system into? If 43% of DVP commuters are from the 905 but they only go to Richmond do we pro-rate how much non-residents should pay based on their using 43% of 87% of the capacity, or whatever that comes to? You can't run a region that way and you can't build infrastructure that way. (The larger Gardiner issue is how selfish it is for one council to vote to build infrastructure but, knowing others use it too, vote for people other than their constituents to pay for it.)
If the larger point is that the TTC needs to be funded adequately, I agree. Should it receive outside-Toronto funding (either like it used to, or via Metrolinx)? Almost certainly. But I don't understand the questions you're raising in regards to this particular project and the capacity challenges it may or may not present.