I don't think Canada post needs to be profitable, I agree that it's a service and should be run like one rather than a business.
But just because it's a government run service doesn't mean we need to toss money away either. If problems have been identified and they can be more efficient, why not?
I don't see why mail needs to be delivered every single day, especially if it's only junkmail that day.
I don't see why door to door delivery is necessary either now a days. I lived in an area where I had to drive 20 minutes to pick up my mail, I survived. Maybe there's a scenario I'm missing that my life experience hasn't exposed me to yet, but if there are cases like that, maybe disabled people, let them apply for door to door delivery on a special case by case basis.