Part of the issue with CTV Kitchener is that it's so close to CTV Toronto. From a network coverage perspective, it would have made more sense to make London a CTV station and Kitchener CTV2.
The other thing that needs to be done is for the CRTC to abandon their one station per market per owner rule for networks. There is no reason why there should not be both a CTV and CTV2 station in both London and Kitchener and also in Toronto. It's also the reason CTV was forced to take the "A" network. The CRTCs thinking is that it prevents too much media concentration in major markets but it hasn't worked. All it has done is helped to kill Canadian OTA. It's also unevenly enforced due to exemptions for cultural stations and some other types of stations. That's why some cities have two Omni stations but only one CTV station.