I think what's wrong with the transitional livery is easily explained.

All components of both AC and CP were designed to work as part of a whole. But to mix and match with pieces from each, is not likely to work.

Specifically, the "A I R C A N A D A" lettering was designed as part of an overall look, including the tail and fuselage. The "Canadi>n" lettering was designed to work with its paint job.

Unfortunately, the planes are very different: AC tail is solid dark colours (mostly green), CP is blue with a lot of white showing. AC fuselage appears to be white all round, CP darker on the bottom.

And of course the colours are wrong: "AIR CANADA" is (I believe) the same red as the leaf on the tail, giving white green and red; "Canadi>n" is red (maybe not the same red), but they've stuck a tiny goose in blue as well.

To me, that's really what's wrong, not that one is necessarily better than the other, rather the combination doesn't work (if anything they may have been designed to contrast each oether), and it would look just as bad to have put "AIR CANADA" in letterspaced blocky (different) red caps onto a Proud Wings aircraft.

andrew