May I suggest your outrage is a bit inflated, and misplaced?
First off, the applicant is proposing to save the facades; not the City.
The City is simply noting that it is standard WHEN saving a heritage facade to make that more prominent at street level vs any tower above.
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Perhaps more importantly, you may wish to read Project End's post here:
Finally something that got class for this intersection ! This building looks like a structure that would have been developed in Eurasia ! Not a box It's a value exercise. It's not real.
urbantoronto.ca
Which indicates this is likely not a real proposal; but simply an effort to upzone to increase value.
The City also notes that in its comments by suggesting the footprint of the site simply isn't reasonable for a development of this scale, irrespective of heritage.
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Breathe. The City is not your enemy, even if you disagree with some of its decisions (we all do).
There is also room to disagree about which heritage worth protecting.
But perhaps save that for a more tangible proposal; and one where the City and Applicant are on opposing sides.