This situation is totally the CRTC's fault. Apart from the ownership rules stated above, they modified a deal where Rogers was to acquire the A network (now CTV2) when CTV purchased CHUM. Bell wanted CITY but the CRTC stepped in and said it would only approve the deal if CTV took the A channels and Rogers took CHUM. That ruling was due largely to CRTC ownership rules already in place. CTV's reaction was to start gutting the A channels of their assets and threatening to shut them all down unless it got financial relief in the form of a tax on BDU subscribers (which became the LPIF.) That staved off the shutdown of the A network long enough for CTV to come up with a new business plan that created the CTV2 network.
The larger situation, of course, is that the the CRTC would even allow this type of concentration of ownership when its own regulations meant it would deny Canadians full OTA coverage by all networks. The bottom line is that the CRTC will not allow CTV to operate both CTV and CTV2 stations in the same markets, a situation that is contrary to consumer interests and the wishes of most Canadians. In my opinion, the CRTC should encourage Canadian TV networks to have a market presence for all their networks in all major Canadian TV markets and operate transmitters that provide full OTA coverage to as many Canadians as possible. Until then, we are stuck with the current situation where most Canadians can only get either CTV or CTV2 (or neither.)