I've done a sketch of what I think you're describing. Is this correct?
And I've also sketched what the City of Toronto plans to do:
In both images, the lines indicate the movements permitted during the signal phase when Lawrence has a red light. Red is cars or buses and blue is pedestrians.
With the loops in your version, cars would theoretically be able to turn onto Lawrence for a big portion of the signal cycle, but in practice i don't expect there to be enough gaps in pedestrian and car traffic that many cars could get through.
Between these two options, I prefer the City's version. It would also bring a significant capacity increase relative to the current layout because eliminating the south ramps to/from the Allen allows the number of signal phases to be cut down from 3 to 2.
Compared to the SixRings design, fewer traffic movements are permitted when pedestrians can cross, making it much safer for everyone.
As for the Eglinton/Allen intersection, I disagree about the way in which traffic congestion should be eased. I think that the current configuration is an excellent compromise between pedestrian and motorist convenience and safety. Building a more highway-like intersection would make walking more dangerous and unpleasant, which is unacceptable at a subway station.
Besides, there is no point in increasing the car capacity of the intersection, since Eglinton itself is unable of handling any more cars anyway.
As a result, the only way to reduce the traffic jams is to reduce the number of cars.
I suspect that traffic is so bad there is that people are willing to put up it thanks to the high speed along the Allen.
I think that we should narrow the Allen to 1 lane per direction south of Lawrence (as shown on both sketches). This would result in a southbound traffic jam almost twice as long, but moving almost twice as fast. The capacity of the road is not affected, since the Eglinton/Allen intersection would be unchanged.
I expect that this would make driving along the Allen feel much slower because people would be sitting in a traffic jam for twice as long (even though trip times would be unchanged).