LRT will stop on-demand only at the surface stops. The Eglinton line will always stop at underground stations, but Finch West has none of those except the termini.
So, the same principle for Finch LRT as for the Finch bus. No riders, no stopping. I don't expect much speed improvement off-peak anyway, but there will be some situations where the bus would stop at both adjacent stops letting 1 person exit at each, while the LRT will let both of them out at the consolidated single stop. Of course that's not the main reason for the LRT construction; the peak-time improvement is the main goal.
I believe the stretch between Kipling and Albion is relatively dense. No skyscrapers of course, but some multi-storeys are there. That's why they added the Stevenson stop. One can always debate the benefits of more fine-graned local service vs the benefits of better longer-range trip times; there is no perfect solution. That said, the average Finch West stop spacing will be a pretty reasonable ~ 670m.