I echo the thoughts and the desire for change in your post, you're right we do have to have make baby steps to make people have more pride in their area and make the area nicer for everyone, the two feed off eachother. However I don't believe this closure has achieved that. Yes Loughborough Road is relatively empty and I imagine some people will probably start to see an improvement in air quality along the road, but closing the road hasn't made LJ a nicer place, so far it's just increased the traffic on CHL and made it even more of a thoroughfare than it was before, it's made it easier to ignore than before, somewhere to get through as quickly as possible.
I know I keep on harping back to a document that has since been superseded but a lot of the original masterplan ideas were great and had thought about how to make people notice the area as the travelled through, whatever method of transport they used, maybe make them think "oh I'll come back here" or "I'll get off the bus and go there". That's what we need to go back to.
Sadly I can't see how we will ever have some of the things you mention, a pub, cafe with outside space etc, where would they go with the current space available? But we can live in hope. If the grant for the re-development of the space the area that the farm currently occupies is won then there is potential for change due the influx of people in the area, more people working/travelling in the area naturally brings more trade and would hopefully encourage more businesses to open which in turn hopefully locals would use too and support.
I went to Vauxhall yesterday to see the new Newport Street Gallery (beautiful space if you're interested!). Vauxhall has had quite a few million spent on it and parts of it, mostly closest to the station, do look a heck of a lot better than it did when I used to work there but on a Sunday when none of the businesses are there, it was dead, no life whatsoever. People were going to the gallery but then leaving the area without spending money there. I mention this as I think this is part of the problem with using the word 'destination', it's misleading, Vauxhall is now a destination because of the gallery but does it bring in money to local businesses? Not that I saw. A destination is somewhere you want to go and visit, not necessarily somewhere you want to stay and spend money. That's why I prefer the idea of a mini town centre or village atmosophere, businesses working together to generate trade for each other and the town/road planning assisting with that.