I know that this article is 6 months old, but I just read it again, and I think it would be a great move by the city.
Under the Regional Planning Commission proposal, streetcars would turn from Canal Street onto Elk Place and then Loyola Avenue, passing near City Hall and the storm-damaged Hyatt Hotel, which is scheduled to reopen next year. The cars then would turn onto the Union Passenger Terminal grounds before heading down Howard Avenue to Carondelet Street, where they would follow the St. Charles line's tracks back to Canal.
I say that they could further expand on the idea by attaching it somehow (either by common on the up-river side of Canal, or on the down-river side of Canal (after it becomes Basin Street via the curved part of Tolouse) extending this line down rampart to esplanade or possibly even further. I know that this would sync nicely with a Pre-K[atrina] idea of reviving the desire line. I'm not sure if that is in the books though, because of the diminished population on the down-river part of town.