Actually it makes a lot of sense. Cannibalizing their best sellers is not the same as taking those best sellers off the market. People who want to buy M equipment can still do so. Granted there is the R&D redundancy, but there doesn't seem to be a lot of M-system R&D going on.
Exactly. Something to keep in mind is that people buying the most basic bodies are generally buying kits and little else- they're generally not buying a lot of lenses and getting deeply-invested in the system. They tend to want one lens to live on the camera, and if they're willing to change lenses don't want to have a bunch of specialized lenses. Even when it comes to focal length, a single superzoom is more appealing to that crowd than a standard zoom and a telezoom. If they go for two lenses, they tend to want two lenses with very discreet use-cases- a standard zoom and a tele zoom, or a standard zoom and a portrait prime are popular combinations with that crowd.
Somebody who bought an m50 three years ago might have bought a second lens to compliment their kit lens, or upgraded their kit lens to a supezoom, but if they feel the need to upgrade from there is very likely to buy a new kit- and so can easily transition to a new ecosystem, whether from canon or another brand. While the M6II largely appealed to a crowd that's likely to continue to work with the system they have, most of the rest of the M series appealed to the segment of the market described earlier. I suspect the M6II's sales numbers, along with the sales numbers of lenses prompted by an m6II purchase, will largely influence Canon's long-term decisions about whether to grow the EF-M line into the upper-end market, or grow the RF line down into the budget market.
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