@Nightsky: Technically, the other side of that gate is still America. The actual boundary between countries is halfway across the bridge. It's marked by an American flag, about 10 feet of space, and then a Canadian flag. In between the flags is a plaque marking the boundary. I would have taken a picture, but there were too many other people taking pictures of themselves straddling the two countries, ha.
@Photolitherland: Crawford is correct; the actual downtown of the Canadian side is far removed from the Falls. It is nowhere near the hotels you see in the photographs, and I doubt that most tourists go anywhere close to it. It used to be run down, but developers are trying to create a cultural district (galleries, boutiques, restaurants). I was there recently on a Saturday evening, and there was not a soul in sight; too bad. It has a very "small-town" Ontario feel, consists of basically one street (Queen St.), and I actually think the American downtown has more potential with a few gems already in place. If you're interested, here is a thread with some downtown Niagara Falls, Ontario pictures which were taken in horrible winter weather!
http://forum.skyscraperpage.com/showthread.php?t=188478