Just fly above the restricted alt (above 3500), no reporting, fly whatever track you want etc.
They talked about this last month at a Transport Canada Safety seminar.
Yes, you HAVE to fly above the restricted airspace, or you WILL be "violated".
The procedure is under "Niagara Falls VFR Terminal Procedures chart" in the CFS. I suppose you can argue that technically it's not controlled airspace within that area and you can do what you like, but that's like charging into an uncontrolled airport and doing the same thing.
Just do the proper thing. Enter from the 420/QEW or Navy Island point, fly the circuit as depicted, and exit as depicted. Talk on the frequencies. Fly safe.