[ScreamingViking]

Exactly. On a 2-lane road, 2.5 km from the nearest interchanges on both sides... even the nearest north-south streets accessing the city road grid are each 1 km away (Grays and Millen). No urban amenities close by.

We should be building up more than we do, but not in locations like this.

Is the developer's real goal to swap a serious downgrade in density on this site for much more permissive zoning somewhere else in the city?

This would be much better near the new Confederation GO station. Fairly close access to future commuter train service, a major arterial nearby with great QEW access, and I imagine there will be improved bus service on Centennial to the future LRT at Eastgate once it's built. There is at least retail in the area (albeit the ever-pedestrian-hostile big box "smrt centre" variety). And a long-term vision to redevelop the Centennial Pkwy corridor into something much more dense and "urban". The developer may not own any land around there, but could the city try to help out? I think it would be in their interests.