Now 5D2 focus, shutter lag, shutter noise, these are other issue altogether... the 7D is a real upgrade in each of these, which is why a FF 5D/7D merge makes so much sense!
I can't say I really understand this at all. Why does the 7D line need to be deleted in order to improve the next 5D? Surely it would make more sense to just... improve the next 5D. I don't see how certain features in the 7D line precludes them from being in any future 5D. Most of these features are simply because the camera is newer.
I see it as this... To make improvements, really solid improvements to the 7D, it likely should push it closer to the 2000 - 2200 range... Even as so, with the sensor side being so close, and if the next 5D does get higher FPS and AF, then it becomes the question of is it worth Canon having a $3K FF and a $2K or so crop that are pretty much identical other then one is crop and one is FF...
At the same time below it you have an $800 or so xxxD series Mid Consumer level camera and I imagine the 70D become more of a $1200 body and gets an upgrade.
And really... while the 10-22 is a great lens, the 17-40 is pretty much a swap both in price and maybe a slight step down in IQ, but not by much.
It costs money to produce and manufacture individual lines of lenses, especially if there is a smaller market. Makes a lot of sense to me for Canon to promote Pro bodies with Pro lenses the L series, have general purpose mid level EF lenses, and then have some more specific EF-S lenses to fill out the crop line.
I really don't think you will see Pro Level EF-S lenses, and while there are a few good ones out there, makes more sense to produce lenses someone can grow into and continue than to have to sell off when you upgrade.
You are assuming that everyone who shoots a Canon DSLR intends to move up to FF at some point. That is not necessarily true. I wish Canon knew this. I'd LOVE LOVE LOVE to have a 17-55 with L build quality and weather sealing.
Although, perhaps Canon doesn't care. Maybe they don't want to turn the APS-C standard into a fully featured system with every equivalent option, except sensor size.