I'm looking forward to seeing what they end up doing with the old brewery part of the building... it would be neat to see it converted into another brewpub if the local market could bear another one; I don't really know what the scene is like these days.
The point stands, though, that it's not like they're putting a tall building at the corner of King and Erb. The character of the street is pretty different at this location.
Looks to me like they are keeping the old building - can see the side windows inside the new glass. I would say it was mirrored to frame their page properly - even looks a bit like the Bauer building in the background there.
The pleasantness gulf that exists from Sunlife to the GRH parking lot is a good way to conceptually break up UpTown and Midtown. Yes, the northeast side isn't as dull, but still.