1) what's wrong with the housing there? The train being next door lowers land values and makes the area appealing to some. If you don't like it, don't buy there. It's that simple.
3) The area is very well connected to mass transit. Chasing industry out? The city is getting dense, and commercial is obviously going to replace industry. That's not the city chasing industry out, but the residents demanding better living quality. Would you rather live next to a well thought out urban shopping centre or a meat processing plant?
4) First, you criticize the decision to add housing next door, then you lament the lack of thought when it comes to traffic, and now you're criticizing commercial development? Are you suggesting that commercial land doesn't benefit from being next to a streetcar line? Having transit at the front door is just as important for commercial as it is for residential. If the streetcar line wasn't present, the number of parking spaces would've likely been doubled (or more).
5) Underground parking is expensive. You can't possibly expect all parking to be underground. Besides, as long as the parking isn't facing the street, and doesn't create any dead zones, what's the issue? If economics determine that more retail space is required, I'm sure they can add new buildings and place the parking on top or below them.