For one thing, in the USA there is no way that an end to launched at $800 could compete with the current M priced $500 cheaper. There seem to be quite a few of those in retail channels right now.
Much like the Rebel/xxxD line, this update is very incremental. I don't think Canon believes many people will upgrade from one model year to the next at this consumer level of camera. These annual refreshes seem intended more to keep the product fresh, as in not outdated, on the consumer market. That motivation may be even more true in Asia.
I suspect (hope?) that when a version of the M with the 70D's sensor is released, Canon USA will bring that one to market.
With Sony now offering FF mirrorless, I don't really think Canon can compete in the US market without something comparable...and something with a particular edge (like DPAF, or even QPAF.) I don't care much for the Sony brand, but they are certainly putting up a lot of competition. The piddly little old EOS-M2, priced at $800, doesn't stand a chance in the US. Maybe they will release the FF EOS-MX in 2015...with a 54mp sensor...