That's correct. However, outside of the Toronto urban area, there are about 70 seats for the Conservatives to take, and they could easily take 55 of them (even if it means a few Liberals crossing the floor - hopefully a few will). The NDP could also get a few, holding on to what they have at least (6 seats outside the GTA).
If Mr. Dithers is limited to the Toronto core + a few others, that is only about 40 seats in Ontario, and even with sporadic seats elsewhere, that will only be enough to get him the Official Opposition, at best.
Realistic seats for the Conservatives right now:
NL - 3, NS - 5, PE - 1, NB - 4, QC - 0, ON - 65, MB - 10, SK - 14 (all), AB - 28 (all), BC - 26, North - 1 (Yukon)
Total: 157 (slim majority)
Re: your comment about recruiting supposed right-of-center Liberals.
While I'd prefer to see authentic conservatives like MP Cheryll Gallant getting elected from Ontario, 2 more Grits I could live with seeing cross the floor after a tight outcome are Mississauga's Paul Szabo and Albina Guarnieri.
Many of the people you've mentioned are likely to the ideological right of some CPCers who may get elected from Ontario. With the nomination lists now frozen, Ontarians will be offered many of the same pathetic failed Harris regime red-Tory rejects we saw last time out. I'd take someone like Albina over a politically correct slimeball divorce lawyer like Orangeville-area CPC MP David Tilson any day of the week!
BTW, at least fill out your location on your FR home page newbie and welcome aboard.