I'd argue, as a few have, plopping down a LRT anywhere really won't necessarily spur development along the line. Hi-way 7 is a good example, though no LRT - and a BRT is only being built now; This area (the Markham stretch up to Warden or so) has been booming (mainly commercial development) and more so now residential development regress of any mass transporation. There is service on Hi-way 7 don't get me wrong, I take it eveyday - but I don't think this really contributed to much if any of the development, it would have happened either way.
What about the Spadina side of the Yonge/University line ? Okay it's not a LRT but very little development took place along this route - very little revitalization, very little of anything. Were starting to see some action now but nothing for many years.
I'm very curious how Sheppard will turn out (whatever is built).
I think a key to all of this is how much commercial development is along the line - that's what really spurs everything, including more residential development.