I suspect she will need to handle this kind of like the Therma Spa / Ontario Place. A give and take type thing. Give Ontario place, get DVP/Gardiner off Toronto's books.
She likely knows she needs to give Doug some sort of "win". Personally I would be most willing to give up the Bloor W bike lanes. As much as losing bike lanes sucks, when they are just painted lines in the road its different. In return, she could bargain for keeping University but removing on street parking or something to appease. Out of all the ones mentioned, ripping up University would be the most insane since they actually redesigned the whole streetscape.
I agree though, she needs to put a very strong foot forward.