Seeing as to how it was in 1967, I would imagine the Canadian Open was held in Montreal to coincide with the Expo 67 world fair. I would also imagine, as you state, that the construction of the facilities for the '76 Olympics spelled its doom.
The course is more or less "intact", with corridors and most raised features still easily visible. It is now Parc Maisonneuve.
Unfortunately, I haven't been in that part of town in about 10 years, so I don't know all that much about the course in past or present state. However, Parc Maisonneuve is the most important parc in eastern Montreal, and one of the biggest parcs of the city. It is hugely popular to the nearby citizens (in some of the poorest neighbourhoods of Montreal). Even as a golf course architect, I would be quite reluctant to restore it.
From the little I saw of it, I would also stronly agree with the "Gaza strip" description...
Mike,
She's most probably french, if from the neighbourhood. And with all due respect to her, if you think she's cute, you really need to get to Montreal soon.