The people have always wanted subway expansion no matter the cost.
This is really the crux of the debate.
Yes, the people (and that probably includes many of those tarred with the pro-LRT brush on this forum) have always wanted subway expansion.
But no, not at any price. And that's the problem - subways cost a heck of a lot (just look at the percentage of the TC budget devoted to the tunneled Eglinton portion vs the rest of the lines).
It's one thing to say 'hey, the province and the feds should give all this money to build it', but in this age of budget deficits and high government debt loads, whether it is the city, province or feds providing the money, it is going to mean more out of the pockets of those people that want subway expansion.
Any basic examination of the numbers will show that you aren't going to be able to build much of a subway line by selling air-rights, by putting $5 tolls on the DVP or selling Toronto Hydro.
What do you really think will be the opinion of "the people" will be when you tell them property taxes are going way up, tolls will be $10 and also on major arterials, GST, PST and/or income taxes will be raised and various transfer taxes and fees imposed. You gotta find those billions of dollars a year somewhere and rooting out bureaucratic waste ain't gonna do it either. Maybe cut a few important government services and fundings for other programs.
Too many people who "want subway expansion no matter what the cost" seem to think that money from "the government" is just some bottomless well that can be tapped with no impact on them. That's not the way the world works.
As much as I might want subways everywhere, if we want to have any kind of discernible transit expansion in the next 10 - 20 years, it's going to come from TC or some parred-down variation, not from completely scrapping the plan and declaring 'subways for all!'
Pragmatism.