I am thinking of a modified version of the latest LRT design:
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The Eglinton and Kingston Road sections retain the close stop spacing, as the city wants. So, it can support multiple highrise / midrise buildings, and doesn't require parallel local bus service. The travel along this segment won't be fast.
If someone wants to get from the Kennedy Stn all the way to UTSC, they will take the subway to Scarborough Centre, and then the Ellesmere BRT. While the LRT will mostly serve shorter trips: commuting residents to Kennedy subway, same residents to a GO station, or students to UTSC.
But the Sheppard section has all mid-block stops removed, and isn't redesigned as an "avenue". It stops at the major intersections only: Markham Rd, Progress, Neilson, Morningside&Sheppard. The mid-block stops will have a local bus. That bus is needed anyway, to serve the part of Sheppard east of Morningside. (Even if the Zoo LRT branch is added, there will be a section of Sheppard east of Meadowvale that needs a bus.)
Thus, the Sheppard LRT section will provide a reasonably fast connection from Malvern to both Subway Line 2 and the Sheppard Line, and from the Sheppard Line to UTSC.
I personally would rather see the Sheppard subway extended along Sheppard and up to MTC, and have the Eglinton East LRT terminate at Sheppard and Morningside.