As I've mentioned before, Montreal is a great city to visit and party in, but I'd never wanna live there. It's not just the governments that are corrupt (or at the very least bloated and over expensive) it's the fact that there is a lot of organized crime and even mob influence there that is all tied into that.
As far as Toronto being culturally diversive it is, but I don't think it's quite as much as Montreal. I know that's one of Toronto's slogans and all, but I've heard more travelers and more Americans mention the diversity of Montreal over Toronto, and not just because of the French language thing.
I will say that both cities are very ethnically diverse.
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