I guess it would partly depend what route the LRT would take up the escarpment -- Claremont access? Arkledun/Jolley Cut? Dedicated tunnel? (probably not James Mountain Rd. given how narrow it is, and the homes at the lower end). And how it needs to cross over/under the CP rail corridor; a Claremont route takes care of that, then decide if the LRT gets over to James on Hunter or Jackson... on James or John St. you're probably looking at digging down for enough clearance under the tracks.
But I think it should be on James. Direct connection to the B-Line, most of the activity is on James St., and it's fairly central to development occurring or planned both west and east. Put stops at or near Charlton, Hunter, King, Cannon, West Harbour GO, Burlington, and terminate somewhere close to Pier 8. If money was really no object, tunnel it through downtown.
I don't understand the reasoning for having the current express bus
routed onto John between St. Joes and Barton (opens PDF) when it travels northbound.