The stereotypical bad canadian cartoon happened because of Teletoon. They learned that Flash Animation could be used to produce a lot of cheap animation quickly. So they bankrolled a lot of cheap cartoons with a quantity over quality approach to fill out their roster and that they could license out.

Interesting take, but as a Canadian, I want to clarify some things.

First, Flash/ToonBoom is used in Canada because we generally animate our own shows rather than send them overseas. Since most Canadian animation studios already specialize in the software, it goes hand-in-hand (they also animate some American shows like The Loud House).

Second, unlike Cartoon Network, Disney, and Nickelodeon, Teletoon doesn't have an in-house production studio. They just fund the production of cartoons made by various companies (Total Drama is by Fresh TV and Detentionaire is by Nelvana – both in Flash BTW). So "original series" is a bit of a misnomer for their shows.

Third, the Canadian content laws you allude to also apply to live-action shows. The same laws that supposedly gave us Johnny Test and Almost Naked Animals also gave us Trailer Park Boys, Corner Gas, The Red Green Show, Degrassi, Flashpoint, and Murdoch Mysteries.

Fourth, since about 2015 or 2017, we've been making LESS cartoons (English Teletoon had no new Canadian shows in 2020) due to lightened CanCon laws.

Fifth, Teletoon is not the only Canadian network for cartoons. You talk about it like it's the only channel Canadian kids have, but we also got YTV, Family, CBC Kids, Treehouse, etc. Studios make cartoons for them too. We also have actual Canadian versions of Cartoon Network, Nickelodeon, and Disney.