Ottawa/Gatineau is a totally disfunctional pair of cities. There are too many levels of Government involved in even the most trivial of decisions. Ottawa, The City that Won't, is hamstrung by the City Council, the Federal Government, the Provincial Government, the City of Gatineau Council, the Quebec Government, and the biggest hurdle to get past, the National Capital Commission. Then of course there is the "Old Money" families who control other faucets of development in the city, not to mention the Unions, ie. OC Transpo's union.
Grandiose plans are not unusual. What is unusual is if all of these parties can get together in agreement, or at least the parties that are involved can agree.
All of this does have an affect on whether or not DND will move/consolidate in the Nortel Campus. There are legitimate transportation concerns. There are the poor imaginations of current city and Regional planners in their plans for future development. There are the numerous Left Wing and Environmental Lobbyists who are holding up development of Road and Rail transportation systems.
The Nortel Campus may look good, as did the JDS Uniphase Campus off Prince of Wales Drive, but I imagine the same excuses will arise as to such a move.
Will the city run Light Rail out to Shirley's Bay on the existing line, or will that be one hundred years in the making, long after the line has been turned into the Trans Canada Walking Trail?