This place is pretty great. As a tourist I always love those kind of "go-to" places for tourist photos. I don't there is anything wrong with it either.
Nathan Phillips Square is just that. You can get a picture in, besides, or in front of the huge Toronto sign. Or if you're a local, you can have your lunch outside in the seating areas. It's a great meeting spot because it seems to be pretty centrally located.
In the winter they put an ice staking rink in front of the sign. I would never partake, but it would be amazing to witness.
I saw office employees spending time on their lunch break there, I saw tourists and yes, I saw a few homeless, but it's a really great spot to just take ten-fifteen minutes and realize. It's close to Eaton Centre so if you're a shopper there is that too!
I'm a fan of this place. It's definitely an Instagram worthy opportunity if you go.