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Dynamic cities are the product of the mentality of their population, not the other way around. That sounds like defeatism, sure, but a lot of the suggestions here strike me as big 'top-down' instead of 'bottom-up' ideas. It's a product of a government minds, in a sense. I see this a lot in any industry - the culture inhibits thinking out of the box.
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Only government particularly municipal government has the power to facilitate improving the way a city operates. We cannot have patios everywhere without the city's support. They set the sidewalk rules. We cannot create public places that people want to go to without the city's involvement. We cannot improve walking and bike infrastructure without the city's participation.
All of these things support making a city more dynamic if done properly. It might not make Ottawa, a Montreal or a New York, but that should not be our goal. Our goal should be to make a better Ottawa.
Yes, we need grassroots involvement, but that can be both a positive and a negative, ie Nimby's. Effective decisions are top-down because that is where the power is but it also depends on listening well to the people. Watch the video that I posted on building great public spaces. It is about New York City but can apply anywhere.
One important thing is that we get very creative people involved, who can get exciting projects past the bureaucrats, accountants and the engineers. Remember how a concern was expressed about maintenance costs of public spaces on Lebreton Flats. That makes you think of weed infested bland pieces of lawn or expanses of concrete would be the outcome. That points to a lack of creativity and even trying to stifle creativity. Great public spaces will attract both people and their money. Saving money could be counterproductive if we end up with something underwhelming and unattractive.