OK if the falls aren't touched
Niagara Falls is one of the great natural wonders. Keep the casino hotels & other attractions a tasteful distance away from the falls (with the views at the top of the hotels in the sky lounges/restaurants), and I'm all for it. Can't let the Canadians have all the money. That said, the best views of the falls (especially Horsehoe) are on the Canadian side. That won't change. If the attractions and casinos are there most Americans will stay on the American side, since customs at the border are sometimes a bit of a wait. The business alone from the Buffalo area and other upstate NY cities alone would pay for the upgrades.
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