I'd put U of T somewhere around 8-10 in my rankings of best physics departments in the world. Toronto's also not the worst town in the world, although the winters are pretty cold (think Detroit but a bit colder).
If you can get in there, though, you are doing pretty well.
My general sense of U of T (and this is really based on nothing at all) is that it's somewhere around 30th in the world (maybe plus or minus 10). Maybe not quite up there with the best US universities, but still a great place to go.
I have one more concern- there is a lot of talk on other forums, saying that Univ of Toronto is actually a terrible place to go to, that the professors dont spend any time on the students, and that it would be a terrible decision to go there.
Anyone already at the Univ of Toronto, able to give me some feedback on that?