A four year old article, but from this this link
https://www.squamishwatershed.com/updates, it seems to still be on the table.
"Collaborative discussions to help all stakeholders and interested parties achieve a positive outcome for themselves have been ongoing since 2017 including a District of Squamish-led workshop in January 2020. The workshop was to address the removal of a portion of the lower Spit and outlined short and long-term alternatives for wind sport access. The result of that workshop was a list of actions that included direction for the SWS and the DOS to begin developing access plans that consider the removal of the spit and begin to raise funds for the alternative."It appears that a (partial?) removal of the spit is still in long term planning and that the three phases of the Central Estuary Restoration Project are to improve access and water flow in the short term.
Phase 1: Upgrade existing culverts in the training berm to improve fish access
Phase 2: Modify the lower section of the training berm to reconnect the lower estuary
Phase 3: Install a flow control device under the CN rail spur to re-water historical channels
Edit to add: I'm just reading what's been put out there. If others have first-hand knowledge that differs, I'd be curious to learn more