Canon might be well positioned to produce something which can start to bridge the gap between those types of systems. RED seems to have bet right that you can differentiate between different models to match needs and budgets, but Canon's video DSLRs (and video-equipped DSLRs / in general; even mirrorless cameras are fighting to get into this space) already seem to do pretty well for much of the budget segment RED was hoping to capture; they might be able to cover much of the remaining high-end market with one solution here (especially if it's affordable). From what I've read Canon must be looking to recapture some market share in electronic news gathering, but this will at least help offset that market impact if they can't recapture it.
It will be very interesting to see if the lenses are PL or EF mount, or both. I admit being caught offguard by their announcement of support for PL mount, and moving more towards EF mount could maybe be seen as reneging a bit on that promise. They will be looking to lock in customers to whatever system they create, but they also hopefully realize (as I was told months back) that in the high-end video / cinema markets that compatibility with PL mount primes is important.
Sensor size will be another interesting thing to watch for - full frame, larger, or smaller? I have no idea what Canon could or should produce, but from simple dimensions full frame sounds like the most efficient use of an EF mount (same diameter as Arri PL, and a shorter flange focal distance).