J1 was a mistake, imho. too small a sensor, not enough lenses, m4/3 and NEX are too entrenched already (you can get adapters for almost any lens to m4/3 and NEX, although give china a few more months and they'll have J1 adapters on ebay too).
It also didn't help competing with the NEX-7. If I were going on a holiday tomorrow, and had the cash, i'd be buying a nex-7 with a zeiss 21mm lens and that's it. (although, if i had more cash, that'd be an M9).
Their strategy of not cannibalising their own dslr sales by bringing out a low-spec evil was a bad idea from the start. Low-end dslrs are going to get cannibalised by m4/3 and nex anyway, they may as well join in the fun.
On the low-end dslrs though, I though nikon had been doing a bit better than that? D5100 and D7000 weren't so bad cameras, i thought (although I don't have time to check and compare them to the rebels). Doesn't help if they were made in the bits of thailand that were underwater for a few months though...
And on the compacts, smartphones and the iphone in particular have pretty much killed them off. If i were a canikontax company, i'd be trying to get some of that action, not compete against it. Zeiss make glass for a lot of phones these days (among other things), they just tipped $4bil and had their best year ever...