I walk the trails in colliery dam pretty much every day, so I was suprised to see the city had planned to cut through the park with the waterline...but I can see how there will be a fairly significant cost savings with the park route. ( I've altered your map to give an approximate depiction of the proposed route)
Still I'd rather there was another option as it really is one of Nanaimo's gems that I'd hate to see damaged...and many of the trees "blue dotted" are huge old cedars and douglas firs. As for new trails, well that's the city's way of trying to sell the route, cause there really isn't much that the waterline route will bring to the existing trail system - it never runs more than about 50 feet from existing trails and in fact will neccesitate the tearing up of a fairly good stretch of the parkway trail through the park.
Where the pavement ends"