1. I would guess that a number of people did vote against Transit City. We will never know for sure unless we bring in a referendum - a different thread I believe.
2. TTC and Metrolinx should not be assuming Ford will not be elected. Perhaps Metrolinx was adamant about LRT vehicles as part of the Memo of Understanding. Otherwise, I would assume these public organizations should be following direction from the political leaders - which is a fully grade separated line.
2a) I am not so sure that Ford will not win again. The last 2 Mayors have won re-election. Most time in the GTA the incumbent wins re-election. McGuinty won re-election twice even though logically he probably deserved to lose both times. Also, presumably the economy will be better in 3 years time and that would also improve Fords chances.
2b) I am not sure if the desire is for the LRT to be extended (to the airport and to Malvern) or is it to branch out at the ends. For example, the UofT Scarborough-Kingston-Eglinton line could interline with the currently planned ECLRT. Also, in the West, one branch could go up to the Airport, while another goes along Eglinton to Mississauga. From some DRL discussions, and long ago TTC experience, it appears that interlining a subway is very difficult - even though a subway is a closed system and it should be relatively easy. So how could interlining LRT, that runs (partially) in traffic (i.e. still has strong potential for traffic delay, bunching, etc.) be any easier. This brings us back to the reason for LRT being extension of the line. But as I know it, separated ROW already exists (almost) from Jane (Black Creek) to the airport and for extension from STC to Malvern.