In February 2005, I came across reference for CBC Radio to expand into the Kingston market at some point. There still seems to be interest in this as the Corporate Plan 2006-2007 indicates at page 32 - warning .pdf!
I think this would be good as the south-east Ontario region, aka north Easklakia, has little really to do with Ottawa or Toronto, our normal sources of "local" public radio content, and has a population of, frankly, quite a bit - like 1/2 to 3/4s of a Nova Scotia...not to mention the population of west central Easlakia that listens in when it is not listening to the excellent and actually local NCPR.
If I were king I would think reductions in CBC TV are inevitable and might as well be brought in now. I say leave the stations that are the only source of local services in a market and sell off the rest. Put that money in radio and the web, the cheap and cheery media. And place real content providers - both paid and amateur - everywhere.
But I might merge CBC Peterborough and Kingston as well as CBC Hamilton and Kitchener - or maybe connect them as regional hub and spokes.