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.
Canon t1i, 20/2.8, 28/1.8, 50/1.8II, 100/2.8 macro, 70-300/4-5.6, g1x, 430exII, 90ex
Elan 7N with 28-105/3.5-4.5II, Rebel G with 35-70/3.5-4.5, A-1 with 28/2.8, 50/1.8, and 135/3.5