Toronto needs to evaluate mode types by not only capacity, but speed, and the range that they expect passengers to use the service also. I think these are how the modes boil down:
Bus - Low capacity, low speed, local
LRT/Streetcar (On-Street) - Mid capacity, low speed, local
LRT/Streetcar (Partial Exclusive ROW) - Mid capacity, mid speed, local
Mid Capacity Transport Systems - LRT/ICTS/ART (Exclusive ROW) - Mid capacity, high speed, crosstown
Subway - High capacity, high speed, crosstown
REX-Style Commuter Rail - High capacity, super high speed, crosstown-to-regional
GO-Style Commuter Rail - High capacity, super high speed, regional
With Eglinton expecting lower ridership that what would be needed for a subway, i think it fits the MCTS mode the best since it needs less capacity than a subway, serves a more crosstown function than the streetcar lines on Spadina and St Clair since it'll be the primary transit route to the airport (especially the western leg) and thus would need the higher speed afforded by an exclusive ROW.
With that said, there can be a few options that the TTC should explore to build the exclusive right of way... of course underground would be ideal. But, they should really consider elevated or if they have no money, at-grade with true signal priority (gating intersections, not stopping for reds at all, fencing the ROW off to prevent intrusions - the Gold Line in LA is a good example).
I don't think technology choice between conventional LRT vehicles or ICTS really matters as long as we get an exclusive right-of-way somehow.