This is definitely a step in the right direction from Canon, and even if cynical, it's very welcome.
The Canon 7D is the only Canon DSLR with 2 processors, and still it doesn't do anything that the 550D doesn't do on video mode. There's definitely room for improvement even with just software updates. This an impressive camera hardware wise and if Canon wanted, it could do much more than it does at the moment.
Also, I think this should be the way to go with firmware updates and physical models that last longer, even if we have to pay for the updates, cause it's much more environmental friendly, and people these days spend all the time upgrading for a couple new useless features, and in most cases they don't even ever do anything with the cameras.
Regarding a 7DmkII, do you guys really think that Canon will replace their entire range of DSLRs in the same year? What then, not release anything for another 3 years?
I still believe the core reason for the up date is to keep current owners happy and prime them to eagerly await the 7D?? which apparently is still aways off.
Meaning don't go by a Nikon because your 7D is now even more awesome and just think how great the new 7D?? will be!
Its nice but its not ment to be nice - ultimately its an intelligent stall tactic.