This is an interesting suggestion, assuming that:
1) The Bala sub ROW north of the Don Mills intersection is wide enough for 2 tracks.
2) The residents are OK with the high frequency trains.
3) "The Canadian" no longer needs the Bala sub to get to Union.
4) The cargo connection between the northern part of Bala sub and the CN York sub can be retained; this might require 2 subway tracks + 1 mainline track between the Doncaster diamond and the RHC.
From the ridership distribution standpoint, your scheme would work quite nicely. Both the Yonge line and the extended DRL would have healthy loads, not too low and not too high.
Very good, and valid, points to raise. From a quick Google Earth tour, it looks like north of the CN York Sub it already is double tracked (although you mention they may need to add a general track to keep it open to freight), and south of there there are already some parts of the corridor that are double tracked (just south of Oriole for example). It also looks like the overpasses for the line were all built with a 2nd track in mind, so there wouldn't be any costly overpass/underpass reconfigurations needed, at least from the naked eye. As for the Canadian, perhaps it can find an alternate route. A couple trains a week, IMO, shouldn't have priority over a subway running every 5 mins.
As for the residents, I'm sure the connectivity benefits of having a subway near you will partially cancel out the noise concerns about having a subway near you. Certainly Rosedale doesn't hurt that much from the Yonge open cut.
And yes, I thought about it more as I was trying to fall asleep last night, and it is a rather elegant solution to quite a few problems.
1) The southern portion relieves downtown Yonge and provides Torontonians with an alternate route downtown (the "traditional" DRL function).
2) It solves the 'York Region flood' by diverting riders off the Yonge line completely, instead of just making provisions to divert Torontonians off it further downstream. In essence, it solves the problem before it even becomes a problem. Those York Regioners who really really need to get to Yonge, I would suggest VIVA keep the current Yonge St service in place.
3) It actually makes the Sheppard line useful, because it connects 2 N-S subways. And if Sheppard is extended west, 3. It could have quite a nice niche as the "Uptown Connector" line.
4) This would allow Toronto to unreservedly densify along the Yonge corridor, because by and large the Yonge Subway would only be used by those who are within a close proximity to, or have a destination right along the Yonge corridor.
It's a solution that isn't immediately apparent, because like the Bloor-Danforth extension into Mississauga, it's the old "this subway line is closest to where we need to get a subway to, therefore that one is the logical subway to extend". Sometimes, as is the case with the Eglinton LRT and as is the case with this scenario, the most obvious solution isn't the most effective one.
And historydude2012: Nice, haha. And thank you! It's been an evolution to say the least.