As was stated above, the rest of the city is not abandoned or even particularly run down, as it's a fairly typical and intact small Ontario city away from the bright lights of the tourist areas. Despite the condition of the old downtown area, the city of NF ON is still in FAR better shape and is far less crime ridden and depressed than NF NY, there's no comparison really.
I don't know if I would solely blame Niagara Square mall for killing the downtown though, there seem to be enough small cities that can support both a large regional mall and an active downtown core, with my own city being an example.
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Public transit is the lifeblood of every healthy city.
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