It would be beneficial to add a {Connect_to_Centroid} option to the Collapse Hydro Polygon tool. This would create straight and simple centerlines for road polygon intersections.
Here is an example: Blue labels represent the Centroids of these intersections. This tool accurately identifies the center of each shared adjacent road Arcs. Connecting these center's Start or End Node to the centroids of road intersections would yield improved centerlines.

The Summary of the Collapse Hydro Polygon tool states: "Collapses or partially collapses hydro polygons to a centerline based on a collapse width." I'm curious why this tool isn't named Collapses Polygons to Centerlines or just Polygon To Centerline, especially since it works for both hydro and road polygons!