Ya, you'll be right in the heart of downtown. Your wife will want to go shopping at the Eaton Centre which is within walking distance. That idea will need to be kiboshed immediately. It's a huge mall, fairly nice I suppose, with everything. You'll never get her out of there.
Even more dangerous is Yorkville, just northwest of Yonge & Bloor. High end shopping. If she has to get some shopping in, do Kensington Market on a morning. St.Lawrence Market would also be a good bet for brunch one day.
One of the best things about this city is the restaurant options. It's probably the most multicultural town in NA after NYC so take your pick. Little Italy/Portugal on College, Chinatown, Greektown on the Danforth are all within 10 minutes by taxi.
Queen West is good for urban shopping and live music. kingbill led you in the right direction with nowtoronto for checking out who's playing where. Another good thing about Toronto is the scarcity of washroom attendants. We don't like that shit. I don't need some dude handing me a paper towel and looking for a tip. Enjoy your hassle-free piss and handwashing.
If you need to gamble there's a sweet OTB around the corner from your hotel.
http://www.turflounge.com/index.html
It IS Breeders Cup weekend, after all.