Drum, why do you feel it's necessary to change this section? Other than to have the entire QQ stretch consistent from Bathurst to Parliament, I can not think of any reason to do so. It is currently the nicest stretch of QQ with no issues (from my experience) of parked cars or anything else. True, there may be issues with eastbound cars and westbound cyclists crossing over to the north side of the streetcar ROW (actually may be a bigger issue come to think of it, not that the timing of the traffic signals cannot solve). My justification is cost containment (to save $15 mil, as you suggested) and the adage 'if it ain't broke, don't fix it'. And the lack of sufficient ROW (from what I can tell) of actually doing it. I would love to see the cross-sections and profile drawings for this section, and the entire QQ when completed.
That aside, I do like Kettal's idea of only westbound traffic, negating the need to realign the streetcar tracks.