Almost certainly some kind of collapsible pancake but those specs seem pretty limited even for that, perhaps an ultra small lens or maybe just a test of the tech?I agree - they need to play in this league or they may lose in the long term - what you suggest would be appropriate M3 ... and with a couple of extra small lenses, they will have a viable platform. FF mirrorless would also be good..... but I think I will be waiting slightly longer
Not really sure why this would point towards a US release as it seems well suited for the existing very small bodies that sell better in the far east. Ultimately the US mirrorless market is pretty tiny compared to Japan and elsewhere so I'm not seeing that any money spent on it means Canon will return.
My guess would be when/if Canon relaunch the M system it the US it'll be with a higher end body with a viewfinder. I think its pretty clear that what profit there is to be made from mirrorless in the US mainly comes from higher end bodies, look at the amazon mirrorless sales charts and there right up the top.
Personally I think Canon would be well served by a good but not too premium mirrorless body, use the 70D sensor, add an EVF, a small grip and a few more controls without it costing the earth and I think there lens lineup with put them in a strong position. Other systems might have more depth but for core lenses that are optically strong but still affordable the EOS M system seems to have an advantage to me, add in a short macro and a tele zoom of a similar standard and I think you'd got it covered for many people.