I had to google "the archer" to know what it looks like.  Not my favorite of Moores sculptures for sure.  It is certainly far from iconic or representative of Toronto.  The AGO sculpture is much more recognizable as part of Toronto.
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Cities should not be static.  Art does not need to be static.  I don't have an issue with moving the archer ... maybe on University Ave.  It seems large and weighty enough to have an impact if placed well on the street.
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I think the argument that Toronto does not have a role in residential schools is much more compelling.  Maybe this is the wrong piece of art ... but I support recognition of native heritage through art.  In fact it seems like a fantastic idea.