Oxford Road is not a 'main arterial road' - that'll be Princess Road and Upper Brook Street / Birchfields Road. It is already bus/taxi/cycle only past the University and MRI. Metrolink to Fallowfield is perfectly feasible - Wilmslow Road in Rusholme isn't narrow, but just clogged up with often ill-parked vehicles. The cycle lanes also take pavement space leading to conflict with pedestrians - I prefer to cycle on the road on this section. Routing Metrolink through the 'Curry Mile' , banning vehicles apart from buses and providing proper cycle lanes could be an exciting regeneration project. Withington Village is a tricky problem - there is no sensible alternative route for traffic and it is narrow - you have to take up 'primary position' when cycling to avoid getting squashed. Demolition would be the only answer - there is nothing of architectural merit apart from a couple of old-fashioned boozers - but it would be a pity to loose more of Manchester's heritage.
I disagree. The curry mile is incredibly narrow. And Withington too, and both are windy. A Fallowfield tram would have to take a different route for both sections, like down to the retail park. Although Wilmslow Road south of Rusholme is nice and wide so that would work.
But if you deviate once, you should keep going vs doubling back, i.e. if you go east to avoid Rusholme, you stick with it down to Fallowfield - i.e. to reach Kingsway, and then head down to Parrs Wood and join back up with the Met there. That could also include Mauldeth Road and Burnage NR closures - which could well help some of the airport line pattern issues and enable more services to the outer Manchester stops (and much more at East Didsbury, now with two tram lines) - and then Stockport I would expect.
You could head west too, but then you get into duplicating the Didsbury line eventually. I think a Uni route, skirting Rusholme and Fallowfield (but enabling more developments on new corridors) - and then straight down Kingsway to ED and beyond is best.