I agree that's a bad idea. I've been on streetcars late at night which have rolled past even Yonge St without stopping (because there was no one wanting to get on or off).
Many of the modern LRT systems I have used still have stop requests. If those higher-speed independent-ROW systems still have stop requests, the the legacy TTC system, which is still fundamentally a local transit service, should certainly keep it.
The TTC needs to actually study the question of stop spacing. Find an appropriate distance and apply it equally across the system (with a justified exceptions as needed). As is, stop spacing isn't consistent. Why does the 505 stop at Bellwoods Ave eastbound only? Why does the 504 stop at Victoria westbound only? Why when heading westbound between University and Spadina does College have 2 stops, Dundas have 3 stops, and Queen have 4 stops?