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@Oliver Schick
The Merton group will have had some input on that.
http://lcc.org.uk/boroughs/merton
Impossible to comment on it much without some local knowledge and being plugged into local politics.
Obviously, I and others could produce reams of comments of a general nature, but I wouldn't know the context without more study. A proposal that might look very bad in one place might be a step in the right direction in another.
The operative assumption is clearly that much access to the town centre will be by private car, especially, as you say, if there is unused car parking capacity.
Unifying public spaces would certainly be desirable, but it seems that this is the price they want to pay for good bus accessibility.
Again, hard to judge unless you know the area well and you've had a lot of conversations. Do get in touch with the Merton group if you want to get involved in this sort of thing. If truth be told, though, most local groups will struggle to influence major schemes much.