Yup, the parking is absolutely ridiculous in this thing.
I will note that they do appear to be proposing a significant commercial parking component. The amount of parking proposed is already significantly above that which is required by the zoning by-law for the site - the parking rate here is almost 1:1 to units, while Hamilton's existing zoning requires closer to 0.5 spaces per unit in the downtown.
Looking at the plans, the parking ramp to the 2 underground levels appears to be designed for commercial purposes with additional width to accommodate payment processing, so I imagine the 172 parking spaces proposed on the two underground levels are commercial parking spaces, and the remaining 269 above grade spaces are for the residential itself - which more closely aligns with the by-law requirement (0.56 spaces / unit).
The latter component may be reduced, but the former component is already the developer doing it willingly above and beyond that required by the ZBA. King William Residences also overbuilt parking for a commercial component, FYI.
Commercial parking in the downtown is going to be an issue moving forward as Hamilton has very little in the way of municipal parking garages (unlike Toronto), or even private commercial garages, mostly relying on surface parking (which is a bad thing!). As the downtown intensifies, there will remain a significant commercial parking need in the downtown - even if Hamilton does manage to reduce the overall demand with modal changes - and it will be too great to accomodate in the limited amount of existing structured commercial parking. Ultimately commercial parking is needed in the downtown.
The residential parking is free to be deleted though in my mind, provided the developer thinks they can sell the units without it.
The applicant is also only proposing 2 underground levels currently - they should be encouraged to increase that to 3 or 4, if possible, to reduce the amount of above-grade parking required.
It's also important to remember that these plans were only filed for the Formal Consultation, they are extremely preliminary and shouldn't really be analyzed at a detailed level. the final application which is actually made to the City will likely be quite different.