I can see fuji and sony will take a BIG bite in smaller body models build with ff and crop sensors - X100(s) and RX-1 are great gear on the market.
I agree. In particular, in the $600 to $1200 price range, there are so many good cameras around that I'm amazed Canon maintains such market dominance. But they must be getting a little worried. And this is one of the reasons why Canon will (hopefully) return the 70D to its roots - a more rugged, feature packed, well built, action and wildlife orientated camera for those with around $1200-$1400 to spend.
Great autofocusing capabilities is the only significant advantage Canon holds over many competitors. I'm pretty sure it will be the foundation of their camera bodies and marketing efforts in coming years. That way, when people go into a shop to buy their first serious camera, the salesperson will agree that the new Sony or Olympus or Panasonic or Fuji takes great photos. Just not of anything that moves. The 70D, however, not only takes great photos, but also has a state of the art AF system. They'll never miss an important shot again. Add in weather sealing, WIFI, GPS, dual card slots etc etc and, as long as it comes in different colours, Canon can lock in another three years as market leader.
Also, it must have hurt Canon's feelings for everyone to say the D7000 was better than the 60D - especially given that it was cheaper. I doubt they want a repeat of that.