Wow.... Fake stucco... I didn't think renovations could be done so horribly in 2013. The brickwork alone was worth preserving the old building for.
All renovations of heritage buildings should be carefully scrutinized. Much more so than all-new proposals. I wouldn't have a problem with the 21 Dundas tower being built on an empty lot or some building with no architectural value, but not at the expense of an old building.
Old Toronto has so much character, and it seems nobody in power places much value on it. It's not much different from the mentality of the 1960s and 70s.
To relate things a bit to my city.. The late 1950s through the mid 1980s saw a lot of Montreal's heritage bulldozed. Mayor Drapeau (mayor for most of that time) was always eager to issue new demolition and construction permits. In the late 1970s and early 1980s a lot of citizen-formed heritage preservation groups were formed by local citizens, ultimately saving many buildings. Today we have a strong citizen-run heritage preservation group in Heritage Montreal, the Canadian Centre for Architecture (which also promotes heritage preservation) and a municipal Office of Public Consultations, which is independent from our elected officials.
What Toronto needs are non-profit heritage organizations led by architects, urban planners, historians, and other concerned citizens. These types of groups often have more influence than any sort of non-arms length heritage department at city hall.