Make the 70d a 7dii-equivalent, but price it a few hundred less than the FF entry level camera, and everybody is happy (including Canon since they won't have two cameras at the same price competing for sales).
Won't happen. The 60D has become the "joke" of the Canon EOS bodies (I have seen it being called "The Rebel that should have been") compared to features found on previous XXD bodies. (What? The 30D had 5 fps as well... wait, at least the 30D had a metal body...) Tell me what other Canon EOS body was DOWNGRADED and then UPGRADED to the flagship body.
Like I have said, the 7D was designed and marketed as the FLAGSHIP APS-C camera body and will remain so. Can anyone give me a reasonable reason why the 7D replacement (and continue the 7D name) will not continue this tradition?? Oh and what marketing strategy are you basing your logic on? Remember, marketing (sales based on previous bodies) is the only thing Canon will be concerned with when they make a APS-C replacement and if you don't believe me, then you going to be sadly dissapointed with your prediction(s).
The 60D was "downgraded" so AS NOT TO DIRECTLY COMPETE with the 7D. Fact, fact, fact...
So now why would the so called "future" 70D compete with the 7D OR it's replacement? Based on history, the 70D should be, "feature-wise" somewhere in the lines of the 40D or XSi.... Makes sense to me.
I mean why not? The new T4i is darn near a 60D in a slightly smaller body, so where does that leave the 70D? 7D status? They already have a 7D status camera body, THE 7D!!!