Yeah... It is discontinued.
Seriously... if the 5D MKIII has improved AF, weather sealing and FPS, the only difference for a 7D upgrade becomes crop sensor, and at that point... why bother.
My guess is the 70D becomes the legacy to the 7D
Exactly for that 1.6 crop sensor (extra reach) and the price . They will aim the new 7D ( or whatever will be called) to those photographers who can not afford a 1Dx.
And price it where?
7D vs 5D MK II had at least SOME differentiation between the bodies other than Crop vs FF.
7D had a little better sealing, faster FPS, better AF and seemed more geared towards the sports shooter
5D MK II had the FF sensor, a little better IQ, a little better ISO and handling of noise, and larger MP and seemed geared towards the portrait studio shooter.
5D MK III whether people like it or not seems to have merged the two lines, especially if the MP stays in the low 20s.
For the 5D MK II users, you get better AF, faster FPS and better sealing, and otherwise same MP, maybe a little better ISO and sealing... i.e. a 5D MK II with some of the best features from the 7D.
For the 7D shooter, you get a larger size sensor, better ISO, Better AF, Better sealing, and better IQ. Only downside is loosing some of the reach, but all and all it is the 7D with the IQ of the 5D MK II and FF and more MP.
60D and 7D started getting fairly close and I just have a hard time seeing Canon trying to continue with T4i, 70D, 7D MK II, 5DMK III and 1Dx when the t4i, 70D and 7D MK II will likely be very close features, perhaps too close to keep 3 bodies in the space