I've mentioned it in the forum before how to go about about fewer stops.
1. Consolidate some of the stops. Instead of Midland and Famouth, a single stop in the block from Commonwealth to Huntington. Combine Mason and Markham. Combine Kingston/Eglinton and Golf Club. Combine Lawrence and Kingston/Morningside. There you go. 4 highly trafficked stops versus 8 poorer performing ones.
2. Cut the West Hill stop. 116 bus covers this already.
3. 3 stops at UTSC is a bit much. A single underground station on the campus proper, followed by the secondary terminus at Military Trail/Morningside would be better IMO.
I've just taken 18 stops and turned it into 12. And the walking distances aren't vastly affected either. How am I the bad guy for suggesting a leaner, more efficient, more bang for our buck LRT line? If you think about it, I'm not really suggesting to cut anything.
As for grade separation. Again this has been covered previously. Grade-separate at Brimley/Danforth Rd, Bellamy/Eglinton GO, Kingston/Eglinton, Guildwood GO, West Hill triangle, separate bridge crossing at Morningside Park/Highland Creek, UTSC campus, separate 401 bridge crossing if ever extended into Malvern.