But I do not think that tall condos themselves create a village. Condos have their own in-house amenities - fitness centres, pools, security, parking, so that it could be very possible that the residents will have very lovely "grounds", but not necessarily use them.
I still think that just because there's lots of residents, that their presence will provide a proper customer base for the types of local retail uses anyway, except possibly Mill Street Pub and Balzac's. Putting in condos as a customer base is not, in my mind, a justification.
Building a customer base for the types of uses requires marketing as well (events, ads, awareness campaigns), and attracting people from outside the area. There's modern condos all over Toronto, not a bad thing at all, but how do these make the Distillery unique then? I think the Distillery is unique because it is a preserved historic district that is starting to come on its own (it takes time to make a district like this successful!), but marking it with condos, particuarly those that are really overbearing, is not the way to go in my opinion.
St. Lawrence Market area is full of historic buildings, like the Market, St. James', the old streetcar barns that are now a Young Peoples' Theatre, and old commerical blocks. New buildings have gone in there, but they are midrise, at least east of Church. The neighbourhood is a great success, so I agree old and new can coexist.
And I am not against residental uses in and around the district. I'd love to see a hotel in there, as that type of customer (a tourist) is more likely to be a customer of most types of businesses in there.
I really fear that with demolition (of a reusable building, as Unimaginative points out), and overwhelming buidlings with such contrast in heights in the current flavour of modernist condos, really don't add to the wonderful collection that's there now.
Just like in St. Lawrence - the Hazelton Hotel works well in Yorkville, it's taller, it's modern, but doesn't overwhelm. It can be done.