That's the TTC's usual litany of blame-the-customer excuses, but how do you expect to operate a reliably spaced service if no effort is made to have cars depart the terminal station at their scheduled spacing? I ride the line every day. They leave the terminals in convoys. How is that the rider's fault? Or the signals' fault, for that matter. No, reliability is entirely the TTC's fault.
When it comes to travel time, however, you have very good points. I'd get rid of at least a couple of the intersections, particularly the seemingly unnecessary U-Turn light up in Kensington Market. I'd also convert the pedestrian signals for two-stage crossings, like on University. Pedestrian refuge islands would be built in the middle of the street so that slower walkers can cross over two light cycles. Able-bodied people should still be able to make it across in one go. That would allow shorter red lights for the Spadina side. POP or perhaps some kind of Curitiba bus tube is the best solution for fare collection, especially at busier stops. It takes forever to load a streetcar with everybody digging for change and tokens as they get on. Ultimately, I'd like to see a real GPS-driven signal priority system that knows well in advance when streetcars are approaching and ensures that they face a green light.
If we build a Queen Street subway, then the politics will see the end of the 501.
Again, where are you getting this from? I'm not sure you quite understand the political forces at play in today's City of Toronto. It's not the 70s anymore. Nobody wants to abandon streetcar routes. In fact, the Mayor and TTC Chair are big streetcar fans. The media like streetcars too. There is absolutely no reason to abandon the Queen streetcar after the DRL is built, and no way that it would ever happen.
In fact, the 501 would benefit immensely from a DRL. It could finally be split effectively into three routes, which the TTC believes is necessary to improve reliability. One route would run to the Beach east of Queen East station at Pape. One would run west from Queen West station at Dufferin, and the other route would serve the central area. Riders from outlying areas on the streetcar would transfer to the subway for a swift trip downtown, while people going to neighbourhoods along Queen would transfer from the subway coming down from Bloor to the streetcar for their onward journey downtown.