I could see the 70D being what an incremental update to what the 7D might have been.
If Canon is about to introduce a new sensor technology in the 7D Mk II, there's no reason not to throw the best of the outgoing generation's tech at the 70D. I have no idea how much improvement's possible, but Canon managed to milk sensor-level improvements moving between the 1Ds Mk III/ 5D Mk II sensors to the 5D Mk III/ 1D X sensors. Since all of those models were derived from the same process, I think it's reasonable to assume Canon can produce an improved ASP-C sensor without dipping into 7D Mk II tech. And that's just hardware-level tech. If they decide to throw a 5+ chip in, it might be a decent performer, even by modern standards. It won't be able to reach Nikon's dynamic range but if it competes on resolution and offers superior or equal low light, it will be the best APS-C sensor Canon has produced to date, and a legitimate reason for many Rebel, XXD and 7D shooters to upgrade.
The 70D could also have: the 7D's AF, All-I and IPB video codecs at the typical frame rates, tele/wide AFMA, WiFi, GPS, 7 fps, build quality similar to the 50D, various perks like built-in HDR, etc.
At $1200 or so, that doesn't beat the D7100 on paper, per se, but given recent history, it would be competitive enough. If Canon goes nuts and releases it at $1000 or something, it sounds like a great deal.
The 7D Mark II, meanwhile, could debut the allegedly awesome new sensor tech. It could also have robust build and sealing, 1D X/ 5D Mark III-style AF, 10 fps, and maybe even the 1D X metering. Several rumors have mentioned video, which makes one imagine Canon's going beyond the status quo here. This could be anything from 1080p at 60fps to better resolution (e.g. the 1D C Super 35 crop mode). This theoretical 7D Mk II would be an obvious upgrade for holdout 7D owners. It would also compel attention from the video crowd, even if they already have 5D Mark IIIs. More importantly, it would do so without stepping on the C line's toes. It would also be a nice jump for advanced Rebel users, as well as 60D holdouts. And I could see lots of full frame owners picking up one of these as a second body.
I don't have a speck of evidence for any of this. But it seems reasonable enough to me, and if my intuition is correct, I'd consider the 70D a respectable camera. Not cutting edge but a solid step up for a lot of current users.