This is Toronto. So yes, they've been contemplating it for a couple of decades or so. Plans drawn. New plans drawn. Everything all messed up, so big reset. And then work suspended because someone is building a GO station in the way ...
There's a somewhat dated piece on the Exhibition Loop to Dufferin Loop connection at
https://www.toronto.ca/services-pay...on/other-waterfront-transit-network-projects/ under "Exhibition Loop to Dufferin Gate Loop".
With the Dufferin bridges over the tracks and Gardiner coming up for replacement (or past replacement, as in typical Toronto fashion, one of them had to be removed because of impending failure, and there's been a temporary bailey bridge there since last decade), the intent is, at the very minimum, is that the new bridges will include space for the tracks.
If you look closely at many of the future transit maps the TTC stuffs into various reports, that the expanded streetcar network in included, with the Dufferin/Exhibition connection, and the Waterfront East streetcar network, that includes tracks on Queens Quay East, connecting to Cherry Loop, Commissioner Street, and Broadview. In addition to the connection to the Ontario Line (Line 3) at Exhibition GO, there's also at connection to the Ontario line at the new East Harbour GO station, on Broadview Avenue.
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