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Thanks, great info. Yes, I was wondering about Crouch Street earlier as I Streetviewed my way along it. The vacant theatre/cinema building especially hinted that it used to be an important street in the city. No chance of that now. I've just found the Better Town Centre Plan, which gives more context:
http://www.colchester.gov.uk/CHttpHandler.ashx?id=8791&p=0
A quick search hasn't thrown up any on-line consultation documents on that specific junction, but there is this going on:
https://www.essex.gov.uk/News/Pages/Revised-plans-for-Lexden-Road.aspx
I assume that Hospital road was cut off when they dualled Balkerne Hill in '77. Maldon Rd roundabout was made bigger and that bit of southway to the west was added. That's why Crouch street is so chopped up, it used to just be a straight road with a crossroads at balkerne hill but now it's 3 distinct and pretty awkward sections. The Toucan crossing is probably a much later addition but I couldn't tell you how long it's been there.
It's kind of moot now though since it was all dug up and closed as of about 2 weeks ago. All the brick lined vegetation between crouch street and southway has been levelled down to bare earth and they've temporarily closed the crossing to work on the road there. Will be interesting to see how it gets reborn.