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There has alway been a view by TTC and Waterfront Toronto that the QQ line would be a full east-west line to allow service to bypass Union to get people to where they were going faster than change cars at Union. TTC saw cars coming from Broadview Station going to the CNE using the QQ line as well from the Portland area.
This e-w line has been part of the approved Master Transit EA plan starting in 2004 which I was part of and still am.
As for the money, that an issue and needs to be part of section 37 as well more funding from Metrolinx and the city. TTC has made a mess of the loop and cost and doing some buck passing to off set other cost elsewhere.
Having all transit in one area will help everyone and this project.
The full East Bayfront Transportation ESR is on the WT website. ( http://www.waterfrontoronto.ca/expl...ast_bayfront_transit_environmental_assessment ) On the streetcar it seems to say (page 111) that INITIALLY there will NOT be a through 'east-west' link but that the junction at QQ and Bayi will be rebuilt so that it can be added ata later date.