They raised the 5-series price substantially, which left a gap to be filled by the 6D. With what will Canon fill the $1500 gap between the $1K 70D and your proposed 250% higher-priced 7D? There may be quite a few 7D owners who would upgrade to a 7DII...but there's a far larger customer base of Rebel/xxxD and xxD owners that Canon would like to see upgrade, and a >$1800 7DII will preclude most of that.
$1699 at launch.
For a while, the original 7D will fill in that gap. Then will eventually come along the 80D.
I would love to believe you're right- I'm not a fan of Canon's current pricing scheme. But I was personally gobsmacked by the $3500 price tag of the 5D3. I would love to believe that that was an isolated case and that Canon still engages in sensible pricing when it comes to upgrades, but I'm not inclined to believe that Canon is that principled. They will charge what they think they can get for it, not based on how neatly it fits into a pricing tier.