Besides what Archited said, the sunken area doubles as a skating rink in the winter (Block BG will contain an ice plant for it), so they can't have trees in that middle space. I'm a huge supporter of naturalizing urban areas as much as possible, but I think that when the construction is finished, the surrounding landscaping is installed, and Block BG is occupied, this area will look pretty darn good.
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And yes, I know Cineplex won't be a tenant anymore, but I think the grocery store will get more than enough traffic to liven up the area.