Some people are reading far too much into this extension.
It was not "designed" as a Toronto centric service.
It was clearly designed to be a quick political win, which means low cost. As a consequence of that, they simply extended a train that already runs Kitchener to Toronto.
Do people really believe that some people at Metrolinx sat in a room and said to themselves "how can we serve London commuter traffic?" and came up with this?
Seriously, an announcement like this is just a way for the ruling party to get around campaign spending limits.
Honestly, I like that this is the pilot service. Because if even one person takes this service from London to Kitchener or Toronto, they should begin track upgrades/ construction immediately.