Either SLRT and ECLRT continuous with some type of grade seperation, as you describe, OR B-D should be extended to STC, in which case ECLRT could be in-median at grade.
Agreed, however I think that while the B-D extension to STC had some discussion merit (and was the preferred solution in my mind) back in 2006 when TC was released, or 2009 when it was scaled back, or maybe even in 2010 when Ford was elected, I don't think that it holds as much weight in 2012. Why? Because the SRT is on its last leg, and delaying replacement of that line even further is going to cause a headache. If they could get shovels in the ground by late 2014/early 2015, then I would say it's a valid option, but look at the timelines of other subway projects, and you're realistically looking at 2017 or 2018. At this point, that's too long to wait, especially when you consider it would be at least a 3-4 year project.
Bus (BRT or BRT lite) on Sheppard and/or Finch East along with frequent LRT on GO ROW from Agincourt to Kennedy Station would be more then enough for this area.
Agreed, although I would prefer to see the ESLRT extended up to Sheppard instead of a mini-LRT running from Kennedy to Agincourt. If I understand your methodology correctly, you're trying to create a N-S transfer route for Sheppard East riders, correct? If that's the case, better to just simplify the scenario and have the N-S connection to Sheppard be the ESLRT.
But yes, BRT is more that sufficient on Sheppard, as even the graphic from the SELRT EA demonstrates.