Here is my perfect 70D
New sensor tech, but doesn't need to be more than 18-20 mp. I should produce good pictures up to at least iso 6400 with improved dynamic range at iso100 to at least keep up with Nikon/Sony sensors
AFMA a must
keep the swivel screen
97-98% viewfinder (sure 100% would be great, but I'm not that picky)
auto focus system of the current 7D, or at least something better than the t4i (all cross type in a rebel is a huge improvement) to differentiate it.
Pop op flash to act as a master
While some might like wifi and gps, not such a huge deal for me.
So essentially a camera like the current 7D but with slightly lower build quality (weather sealing and such), maybe a less sophisticated AF system, swivel screen, and a new sensor.
Put all that into a $1000 camera and I think they'd have a winner.
Oh, and kit it with the 15-85, not the 17-85