The vast parking lots, though not desirable, are a transitional use and do not permanently define the area. They can easily be changed. Once the area is built up with bad hotels it can not be changed back. It's defined.
What is the Exhibition site after this? It's no longer a monumental precinct - open parkland punctuated with monumental architecture. With this hotel it resembles a suburban node - a bit like the hotels that crop up around airports or casinos in the suburbs. It's not part of the city in an urban sense, and it will have lost it's potential to be a garden-like gateway to the city. It will have lost it's sense of openness and it's monumentality. It is more bad architecture in the absence of planning. Another notch in Toronto's legacy of lost opportunities.
This stretch of the lakeshore was once going to be part an Olmstead designed parkway - an extensive network of park-like thoroughfares much like Boston's Emerald Necklace, Central Park, Or the Chicago Waterfront, until business interests put a stop to the plan almost a century ago.
Some things in Toronto don't change - short sighted business interests still rule. This hotel is the final nail in the coffin.