There's plenty of buildings that are quite frankly terrible that surround Times Square, like the Marriott Marquis. They just seem less imposing because they're drowned out by billboards and the fact that New York City has a lot more density.
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What do you suggest then? Only allow for certain buildings to be built that meet some arbitrary threshold for architectural beauty? That would drive up housing costs even further and turn Toronto into the sort of place that very few people could afford to live in. Hong Kong and New York have tons of trash high-rise buildings, it's the density and dynamism that give these cities their character. And really, this building isn't even that bad. People won't even notice when Toronto's downtown fills out more.