SeanD2,
You make some good points. This makes me think of our two major festivals in Canada: Stratford and Shaw Festivals.
The Stratford Festival (in my opinion) started out to give us the classics of Shakespeare, and other prolific playwrights of the times. Then they started to come into the 20th century. They began doing a musical here and there, but mostly Gilbert and Sullivan. Then transitioned into the classic musicals (Oklahoma, Carousel, My Fair Lady, etc.). Things started to get stale to a degree in the late 90's early-mid 2000's, and then they began to have tentpole shows, lavish musicals, a famous Canadian actor in King Lear, or The Tempest, and then have smaller shows that would be less common, Canadian playwrights, etc. The last few seasons, the musicals have been "contemporary" (Billy Elliot, Rent, Chicago, Spamalot, Rocky Horror, etc.), adaptions of children's literature, Canadian content, etc. while still having Shakespeare to appease the older folks.
Shaw still does their selections of Shaw obviously, but they are seeming to produce more and more shows that rarely get done, or (personally) I have never heard of. For me, the delight is their musical selections, which have been shows that aren't getting done by theatre companies often: Grand Hotel, Sweet Charity, Me and My Girl, Assassins, Mack and Mabel, Wonderful Town, Damn Yankees.
Canadian Stage or (CanStage) in Toronto is also an interesting place as well. They get some unique theatre, that isn't for me, but you can always count on them to do productions of whatever the popular plays/Tony nominated plays on Broadway were. For example: I saw Doubt, and Frost/Nixon in one season. They did The Humans shortly after Broadway, and this year we have The Lehman Trilogy, The Inheritance, and a new production of Topdog/Underdog.