Did a bit of digging, back when M2 was first announced:
The current entrance is probably temporary, to be replaced with an underground connection to the new hotel.
There's one project proposed so far in the old student housing area. The whole area should look very similar to what's on the other side of 39th street, with mostly townhomes and a few midrises.
It's officially complete and open: https://renx.ca/gracorp-harrison-street-complete-rental-tower-calgary-university-district
Sounds like Gracorp is still bullish on student housing in Calgary, even with the reduction in international students, so we may see another project from them pop up...
Exactly. Running the train at grade would likely make the area much more pedestrian friendly by significantly reducing traffic and shortening crossing distances, as long as they design it to have pedestrian crossings at every avenue. The way it is right now, if you want to go to two businesses...