I don't think some people understand the political ramifications involved. I'm only beginning to get it myself.
It all comes down to timing. And right now it all works out in Ford's and (shortly thereafter) Hudak's favour. They get to advertise that the Scarborough Councillors and Liberal MPPs disregarded their constituents best interests and are shutting down the SRT for half a decade while raising their taxes. Ford's opponents won't have much to counter with. There won't be anything in service by that point that they can point to. But their constituents will all have notices reminding them off the impending SRT shutdown.
For Ford, that anger in Scarborough might just save his bacon. For the provincial Liberals, suffering in rural Ontario and flagging in the suburbs, a PC beachhead in the 416 would be disastrous.
Metrolinx can say what it wants, but the government will wear this one. And if so, they'll do what guarantees their interests. Heck, they spent hundreds of millions moving power plants to save a handful of Oakville and Mississauga seats. Scarborough has many more seats. And for the $500 million they might spend to win over Scarborough residents, at least they'll have a subway to show for it. And whoever deliver those subways will be winning votes here for a while to come.