Nice fun question, clear explanation, back to basics of variable declarations.
Of course MS have got the documentation wrong yet again - this is another one of those. The the IF condition @ToCreate = 1 returns neither false nor true, so according to the introductory paragraph of the IF...ELSE BOL page
neither the THEN nor the ELSE branch is executed and @Table should remain empty. Of course this doesn't happen, it's a bug in the documentation. I added some community content to the 2008 R2 page to point this out, but probably it won't get corrected.