Great reply. I think you're correct because if you look out on the coast where there are 4 provincial governments for just shy of 2.4 million people (based on the April estimate) and clearly that isn't working well. They have stagnant economies, high tax rates, low population growth, aging populations, high unemployment rates, low participation rates and a high dependency on the federal government. Be that in the form of actual subsidies like transfer payments or EI or preferential government program spending. Obviously there's more factors at play than too much government for too few people, but I think it's a contributing factor. Only one of my proposed provinces would be as small as an existing east coast province. So hopefully that fantasy Canada wouldn't be terribly prone to the same problems, but it might.I have no strong views about breaking up or amalgamating the provinces. There is just no easy solution to the question of scale in government. The smaller the jurisdictions, the closer the connection between government and the people. But, on the other hand, the more fragmented and chaotic it becomes to address larger regional/societal issues like the environment or the economy. If you go the other way, and expand jurisdictions, the problems flip. And every individual is going to have some issues in which they favor more centralized authority, and other issues in which they would like more local autonomy.
My rational for wanting to blow up Ontario is generally predicated on the idea that Ontario is really becoming an outlier in terms of it's size relative to the other provinces. It's now slightly larger than Quebec (2nd), British Columbia (3rd) and Nova Scotia (7th) combined. If PEI is maybe too small, then Ontario is maybe too big.
One thing I'll say about the size of PEI is that it might possibly serve as a useful future benchmark for the territories if they ever grow to the point where transitioning from territory to province makes sense.
(Selfishly, my reasoning for wanting to blow up Ontario is that I like maps and flags and it's time Canada had a shakeup in that department. )