If any building was to stay, I'd like to see the High Victorian Gothic house on the corner retained. Overall, this new proposal looks bland. There was another proposal passed by C of A back in 2005 for this site as well, but I think it died because the same land assembly effort couldn't be achieved.
From what I recall, the Freed/Lash building at 10 Morrison acquired it's present L-shape due to some of the Adelaide townhouse owners refusing to be bought out way back in 2005 or so. So these hold-outs have gone some way to shaping the existing block.
For such a little street Morrison can get quite jammed with traffic. It'd be interesting to see how this proposed office building could be serviced by trucks through that little lane while cars are trying to make there way to and from the parking lot on the east side of that street.