Why would Cincinnati spend $128M to generate $1.4B of development when they could spend $2.5B to generate $2.5B of development and be world class? Subways are clearly more totally awesome.
Comparing Cincinnatti to Toronto is like comparing apples to oranges. The two cities could not be more different, in their needs, their motives and the kind of economic and political realities that face these two places in two very different countries.
American cities aren't investing in streetcars because they want to improve the state of transit in their city. Honestly, $128M on a streetcar that probably won't even transport 5,000 people a day is a colossal waste of money and is the definition of "pork". American cities are investing in streetcars because a lot of American municipalities are competing with one another to attract sales taxes from corporate conventions and business tourism. It's for the same reason that they bend over backwards to build new convention centres and why they give tax free bonds to sports teams to build new stadiums. A streetcar is a vanity project that gives casual business tourists "something to do" and gives off an image of a squeaky clean environment in which you want to host a convention. Streetcar promoters then wrap the idea of a streetcar as "public transit", or even more cunningly, "a great way to curb greenhouse gas emissions and fight climate change!" and then successfully lobby for federal stimulus funds. Also, there's probably more to that $1.4B in development figure than meets the eye. Portland had to give away $600 million in tax breaks to developers who built along their streetcar line to generate $3.5B in development (PS, that wasn't a loan and the tax revenues generated off of $3.5B development does not equal $600 million).
Building transit ridership and helping the local population move around is probably the last thing on the mind of American municipal politicians and streetcar boosters because, quite frankly, the operating subsidies that are required to run such loss-generating streetcars usually gets yanked from the transit agency's operating budget resulting in a loss of service elsewhere in the system. In America, streetcars are not a transportation mode but a strategy to attract corporate investment.
In Toronto, on the other hand, we don't need to attract corporate investment (we are up to our eyeballs in development) or revitalize our downtown to make it more palatable to coventioneers. On the other hand, we do need to improve our existing transit service which is strained to capacity. For the reasons I have mentioned we are strained to capacity, and arguing over whether streetcars or buses are more appropriately suited for our growing travel needs is like arguing over which African dictator has a better human rights record.