I'm a bit divided on this really. It DOES take up a helluva lotta space, and it IS ugly...
HOWEVER as diLivio states there does need to be somewhere for the lower end of the market. If they did redevelop entirely the rents would go up to pay for it and the cheap shops would move out...
They won't knock it down. Not for 20 years at least. They won't put a Starbucks in there either Val Verde lol - I've not seen one Merrion customer who would fit the Starbucks customer profile (except myself)... The Merrion Centre must be something of a 'cash cow' for TCS. Very little gets spent on it, yet they have constant streams of rent from the council offices, Woolies, Morrisons, AMF etc. The proposed refurb will last them 20 years (in their eyes), then it'll be another refurb or a proper redevelop.
My plan (dream) is they sell Morrisons to Morrisons who rebuild entire store and car park and top 'empty' corridoor'. Use the money for new tower for Merrion House to fit more office space and flats... That would go a long way to making things better.
In reality we all hate the Merrion - but admit it you still use it whether it be Oceana, Morrisons, bowling, car parking or even (sharp draw of breath) one of the shops inside.
I worry (constantly) that this building will one day get listed for being an example of 60's pioneering development/architecture. Then we ARE screwed...