The disagreement is very old. These are the people that first did not want any form of I-69 in southern Indiana, and then proposed an I-70/US 41 route to avoid the new terrain routing through Bloomington when it was clear I-69 would be built. To say this issue has been contentious around Bloomington for many, many years would be an understatement. Rather than accepting the selected 2003 routing, this group has instead embarked on an obstuctionist strategy.
So logically, it would make a lot of sense - existing SR 37 with stoplights and cross traffic would be faster and safer, the hilly and curvy roads like SR 45 would be relegated to secondary status, and the largest university in the state would become more accessible to millions more citizens. None of that matters to them.
It should be noted that areas southwest of Bloomington are generally strong supporters of I-69.
Now that INDOT can build I-69 to SR 37 and can/will withhold all Federal money for roads and transit, the MPO has a big decision to make on November 4. Will they back down or continue? If they continue, INDOT cannot upgrade current SR 37 through Bloomington. It would be a pretty high price for the Bloomington MPO to continue these tactics given these two facts, but you just never know.
This week INDOT accepted bids on the next four miles past US 231 (looks like Crider & Crider is low bidder) so 72 miles of continuous interstate construction will be underway by early spring. By the end of 2011, at least 10 additional miles to SR 445 should be under contract.