I don't think even Canon expected the original M50 to perform as well as it did. From the sales, it appears they hit a sweet spot with that camera. Especially in its current price bracket. So in putting only small upgrades into the successor, but lowering its launch price significantly, they are going with a conservative upgrade that may allow them to maintain a nice profit margin and probably introduce future rebates.I used the m50 update as a sign of how seriously Canon is taking the M line.
They may end up erring on the side of caution here, but in the other hand - what's the worth of a cash cow if you can't milk it?
I don't think the M50 line was ever going to be a good indicator for the future of EF-M. The market segment interested in that camera evidently is just fine with the current lens lineup and ecosystem.
What really means something is the higher end. Is an M5 II coming? An M7? Are they actually meant to absorb a part of the EF-S market? If so, where are the lenses that express this intent?