Hamilton would probably be a disaster for its own reasons. You have diehard lifelong leaf fans there who probably won't be lining up to support a new team. The concerns around a new team so close to TO with a population population of 500k is very real.
I think Quebec should be given a team before atl/Pheonix if you can get an ownership group together, but the NHL may have priced themselves out of Canadian expansion with what they charged Vegas and Seattle.
I just know I've seen Hamilton come up on again/off again, but seems to be the prevailing thought that it won't work like you said.
As someone who's not traveled to the Toronto area before, I can honestly say I don't know the likelihood of a two team Toronto area working. It's wild to think between Manhattan, Long Island, and Newark there are 3 teams, but I also understand how much larger the population is. I just associate so many Toronto area folks I know with being way more die hard than most people in the greater NYC area.