Rail returning to George St is a very strange idea if you ask me. Even the Sydney's Light Rail Future document states that the capacity of Light Rail is 9000 people per hour. The current bus services along George St already carry more than this. The document does go on to suggest that buses may be re-directed to Sussex St and Elizabeth St. It is not clear how they will reach Sussex St along the amber dotted line without interacting with the Light Rail but it is clear that to reach Elizabeth St they will interact with the Light Rail on Eddy Ave, potentially reducing the capacity.
What is worse, is that it seems that some of the passengers who currently access Elizabeth St on bus services are going to be expected to take this sluggish and indirect light rail service, using up some of its capacity.
This is going to be very inconvenient for most. Sussex St is not near to many places of employment. Elizabeth St is better, but not nearly as central as George St had been in the past. Others will have to interchange, probably requiring a separate fare.
So far, they have failed to remove taxis from the bus lane (by making it a "Bus Only Lane") between Market St and Hunter St, but it is OK to remove the buses from this area.
Basically this whole plan is to solve bus congestion by reducing the roads they can access. Even Labor didn't do anything this stupid.