The benefit is more space for sidewalks and bike infrastructure and trees
I am also not suggesting a massive parking garage to entice people to park, but rather something small that would replace the few hundred potential on street parking spots that I suggest are not built.
Kensington Market has a parking garage (
https://maps.app.goo.gl/nbSLCgeai9GKjW1UA?g_st=ac) and it doesn't feel suburban. My condo building in the heart of downtown has 8 levels of parking (4 commercial and 4 for residents) and the area around it also doesn't feel suburban. There are ways to integrate parking garages into a neighborhood and make them not stand out, like by using the first floor as retail, or having residential on top, or both.