I mean, this is what happens if 17E to 11N is to be "free-flowing". Designing flyover ramps from 17W to 11N, from 11S to 17W, and even from 11S to 17E, is easy. 17E to 11N? Not so much. I have to put a roundabout in place if I don't want lights or 9-meter-high ramps. Like I said, consider this an instance of fantasy.
As for realigning Highway 11 to the west, I have heard of the plan too. I just haven't seen any concrete plans (not that Queen's Park is ever serious about Northern Ontario anyway, with some exceptions). After all, Thibeault Hill's steep (or, having an FN right next to the city complicates things).
On that note, it's interesting that I haven't heard Nipissing 10 complain about TCH. Isn't TCH / Beaucage Road a bad spot?