I'd merge Surry Hills + Mont Albert stations by placing the new station exactly halfway between each and extending the platforms a little to trick the eye. Doubt it would happen but they're really so close together that most people would only have to walk an extra minute or two considering that it's only around "12" minute walk between them currently.
Thinking through the options for Surrey Hills and Mont Albert - I'm glad I'm not in LXRA as there doesn't seem to be any good options.
The current standard is straight platforms, so neither station can stay on their current site.
You could relocate both to the straight sections. In the case of Surrey Hills this would be about 50 metres in the Down direction, and Mont Albert would be just north of Mont Albert Rd. But platforms also have to be (nearly) level. Both new locations would be on what are now 1 in 40 grades, so that adds to the excavation costs and makes the retaining walls taller (and more expensive). And I'm not convinced there is actually the width for a three platform station at Mont Albert Rd.
If you replaced both stations with one new station, that would reduce the cost substantially and simplify designing the grades.
If you provided one station in the middle there will only be disadvantages for the locals and patrons. It might be only 6 or 7 minutes additional walk - but that walk is mostly on a 1 in 40 grade. And the LXRA is not good at designing pedestrian friendly pedestrian paths next to cuttings. You are plonking down a station in what is now quiet suburban streets - with the consequent road access problems. The only place to put carparking at the new station would be over the existing line - expensive - and road access would be via the existing suburban streets. Or you could ask the patrons to walk from the existing car parks. The station would be remote from the existing shopping centres/services. And from the bus route in Union Road. The single station is still on what is now a 1 in 40 grade which still means problems with the grades and depths of cuttings.
Given that all the locals would be really unhappy anyway, an option would be to simply close Mont Albert and provide one station at Surrey Hills. Mont Albert locals would be unhappy, but they would have been nearly as unhappy with a centrally located station anyway. You'd be able to use the existing station carparks, and it wouldn't be that much of an additional walk to the bus or station.
The other option is to simply forget about the requirement for straight platforms and put the stations where they currently are. None of the patrons will care or even notice, and you might be able to finesse the locations a bit to straighten out the platforms a bit. The problem with this will be an increase in risk to passengers boarding/alighting.
Which do you choose Minister?