Does anyone know what's happening with this project? I Cannot glean much from official SA Gov't website. Is the removal of existing Tonsley station still in dispute?

The state planning commission rejected the DPTI proposal and told them to have another go at it. There were a number of quite well researched submissions in opposition which demonstrated that the DPTI proposal was not compliant with a number of pieces of legislation and planning policies.

The removal of the existing Tonsley station is not in doubt, but the local residents are pissed about the new plan to simply shift the Tonsley name to the present Clovelly Park station rather than building a new merged station south of Alawoona Ave.

You only have to go there to see that the railway will have to climb up from Clovelly Park at ruling grade to give the required clearance to the multitude of traffic lanes. There is no way you could fit a platform in at the current location. However, there was a location identified where buses would run under the station within the triangle and provide a good connection from South Road and Aberfoyle Park bus services among others. The priority is to serve the hospital and university, next would be a transport interchange.
Building a new station south of Alawoona is an option, the car park is already there and there was a proposal for a second platform. But the gradient will be a key issue.