toronto's doing alright. the leafs are a major sports team. the raptors are canada's only basketball team, they may be getting canada's only nfl team, the blue jays are now canada's only baseball team, and for a while were unbelievably competitive and always high in the standings. they've got an mls team, cfl, etc etc you name it. but i think the fact that they have many of those 'canada's only team' in several of the major north american sports really increases their popularity.
toronto probably isn't the 'best' sports city, by any means, but if you go back to the 90s, you had the leafs doing well every year, the raptors were new, the blue jays had won a couple world series. i'd say that aint bad..