Sydney used to have the largest tram network on earth before it was pulled up
Actually, that was LA but don't let the facts get in the way of a good quote
If I were to walk from Central to the SFS with my 5 year old, I'd end up carrying her for 1.5 of the 1.7 km journey, public transport is the way to go with kids
The benefits of light rail is that it will link Sydney Uni and UNSW meaning University courses could be offered that are spread across the two campuses and reduce costs in the education sector. If you then link that route into Central Station and the major sporting facilities such as the SCG and Randwick Racecourse then you're onto a very sensible solution that covers a lot of different scenarios.
Buses for sporting events have to brought in specially for certain events - having light rail running past these events will free buses up for other routes or will help relieve stress on the few buses that are available for big events.
This proposal is a very sensible idea
PS Pubs between Central and SFS are Aurora Hotel, Excelsior, KB, Forresters, Cricketers, Local Taphouse (ok that's a stretch but they have 20 different beers on tap) and the Captain Cook. There's also a hotel opposite the stadium, so you could technically count that one too.