I agree that a concentration of musuems into the one area would be a very positive step: to build on cdl42's reference to Vienna's MuseumQuatier, that is a wonderful collection of buildings around a great courtyard which becomes a huge open-air bar by night. (Three cheers!) While we couldn't quite do that in this location, we could certainly look forward to increased awareness of all and any museums that were able to locate within sight of the others here.
That said, I would rather that the lawn in front of Annesley Hall stay a lawn. We don't have a lot of green space in Toronto's core, and I'm am against plowing bits like this under. Besides green space for the sake of green space, it provides the U of T and its colleges with some majesty by just having a little room to relax down there.
Otherwise, I say full steam ahead for any redevelopment projects in the area that could include more cultural facilities within them.
42