I think part of it was that Ford can be pushed into eventually doing the right thing once in a while, rather that irrationally sticking to conservative ideology in spite of evidence. He doesn't always pull back from dumb policy decisions, but he isn't like other populists in how rigidly he holds on to them.
With respect to his relationship with the federal government, I think he understands that working nicely with the feds largely plays well to the Ontarian electorate.
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