A more comprehensive assessment would beg to differ on the subject of Norway not being a more vibrant and integral democracy:
https://en.wikipedia.org/wiki/Democracy_Index
https://en.wikipedia.org/wiki/Press_Freedom_Index
Canada ranks 6h overall in what is a subjective list and you think there is a problem with our democracy?
Second, I agree that substantial and meaningful spending and political advertising limits, including spending in kind by third parties, are a crucial and key component to keeping Canadian democracy integral and relatively uncorrupted by private money, and I fully support it, especially since it would help mitigate the considerable funding advantage the right has in terms of private donations; the pressure would remain nonetheless however given the relative ease and logistical advantage of reaching out to a relatively small number of key and centralized donors rather than individuals (unless we somehow managed to forbid donation bundling entirely; if so, great).
Public funding for parties favors established parties and as was done in Canada encourages people NOT to vote if they dont like any of the options rather than vote for the least offensive (to them options) The ide asis actually anti-democratic. Limit donations, dont allow any groups whether they be corporations, union or other to make political donations limit spending including 3rd party and the idea of public funding has no reason to even be discussed. It is a flawed solution that doesn't even try to attempt to deal with the actual problems.
That having been said, the problem posed by private donations must be attacked from both sides if we want to assure an integral and healthy democracy; this is why a public vote subsidy is important: assuring that fundamental integrity is far more important than spending money on parties you may or may not agree with (particularly since odds are excellent there will be parties you agree with in whole or part that _do_ get money). The public vote subsidy had its issues, most notably the lagging funding as you've pointed out, but it is vastly preferable to having parties becoming entirely beholden to private donations, and thus the strings attached to those donations.
Totally disagree see above it is anti-democratic serves no public good and wastes taxpayers money
Not 1 single good thing can be said for such a flawed and wasteful idea.
Third, no, proportional representation would likely not be a case of kingmaker minorities in practice; such pessimism presumes a pretty unrealistic fracturing of broad public support of the major three parties, and/or the inability of those parties to enter into ruling coalitions, particularly with a votation threshold similar to Germany's (5%+). Barring some pretty implausible scenarios in terms of the future distribution of political support, and hardcore political ransoming on top of that with such a votation threshold in place, it is hard to see how PR would produce a government less democratic than the one which put the Conservatives into a de facto 5 year dictatorship with about 24% of the population's assent, or the Liberals with a scarcely better 27%, and in general has been depressingly consistent with producing blatantly undemocratic results.
It would be pretty incredible if PR did NOT make it less democratic the fracturing of the political landscape is already happening with the system we have. We went from 2 to 3 parties now we have The greens and Bloc. They show that single issue or regional parties can exist in Canada. Yes I know Greens have a full platform but they are considered to have 1 single main purpose by most. Canada is a very large (2nd largest) country with a very diverse population each region will most likely end up with their own parties, certain 1 issue parties will emerge, Look to the USA and see the nationalism on the rise you dont think that PR would encourage such a party in Canada? If you look at most countries with PR you will notice that they tend to have instable govts that are almost always coalitions with the smaller parties who tend to be 1 issue parties holding the balance of power this is NOT godo for democracy.
Basically you are trying to fix a system that isn't really broken and in doing so will actually break it with poorly designed and thought out changes