Sales (profits) of "lame P&S" fund R&D that goes into DSLR's.(*)
In general, yes, we need Canon (and Nikon and Sony and...) to have profitable P&S products to drive R&D.
well then the future looks very grim and canon should start making mobile phones.
If they did make a phone with a good lens/sensor combo, a proper flash, and built-in apps to control them with SLR-level controls, I'd buy one. I think they'd sell like crazy to all sorts of Canon photogs.