I'm not sure that the legal situation is all that confusing at all. If you stand back and look at the forest, instead of trying to analyze the trees, it becomes clear.
Prostitution is legal and/or tolerated in Canada AS LONG AS it doesn't present a real problem for anyone else.
Streetwalking presents all kinds of problems, from lewd public behaviour to weird traffic to interfering with other businesses to being obvious to litter. If streetwalkers and their customers behaved a bit more discreetly, based on how we've seen other prostitution situations dealt with in Canada, we can assume it would be ignored.
Incalls have pretty much been ignored by most municipalities, save those who license (cash grab on) escorts. I think the only reason they don't turn a blind eye to incalls is because the municipality's butt is on the line.
But I've been hearing rumours that a decision in a court in Quebec pretty much put a hold on incall charges. I'm not sure I believe it, as it was a different scenario -- it was a swinger's club that charged admittance -- but who knows? Frankly, I haven't seen a bawdy house charge since that decision, and I have seen some formal brothels set up in places like Vancouver.
Many people don't like the idea that prostitution law is embedded in the federal criminal code -- but really, I DO like it! I am an American by birth and upbringing (married to a Canadian -- that's what brought me here). In the US, prostitution laws can vary from one place to three feet away where it falls into a different jurisdiction. That's just too complicated! Here in Canada, by having our prostitution laws embedded in the federal criminal code and subject to interpretation in the courts, we are protected from the vagaries of municipal bylaws, which would change direction like grass in the blowing wind.
Our system isn't perfect, but no system is. I've come to think that our laws and our interpretations by the courts here are probably better than most. I'm not as convinced of our law enforcement or crown prosecutions. Those are more political, I think. And for sure, I think that sometimes more public businesses such as strip clubs, massage parlours and escort agencies are sacrificed on the altar of public opinion. Even if the cases go no where, they still make a big splash in the news ... and put those involved through sheer hell.
If I had my druthers, I'd like to see it return to the way it was twenty years ago. Back then, outcalls were the norm for new business -- but once a customer was in and established, incall was available to him. This protected the independents, the agencies and the good customers. It was all a private matter, beyond the scope of the law. Unfortunately, the customers demanded first-time incall privileges. While I can understand their interest in that, it has put us all at some risk, even if miniscule.
..c..