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?