Neuro's original post was comparing APS-C DLSRs with the APS-C M series.I would not consider the M line competing with the FF line. It is a complementary line for specific users, little overlap.
As an example, a 5DIV user shooting a wedding with a few EF lenses could instead be using an R5 with the RF version of those lenses. Canon wants to eliminate this overlap.
For full frame, Canon has had competition between the EOS R and 5D for coming up to 3 years now and the RP vs 6Dii for a bit over 2 years so far. I haven't seen much discounting for the 5Div so far so it must still be selling okay and no need to discontinue it. I recall that the 5Diii was still available for some time after the 5Div was released as well
In addition to the 2 scenarios you mention 5Div+EF and R5+RF there is the normal transition option of R5+EF. I think that there were very few R5 buyers that immediately went for all RF lenses not least of which were the gaps in the RF lens lineup that EF fill nicely.
Canon doesn't want to eliminate the overlap. They want existing EF lens users to leverage their existing investment and then move to RF lenses when they feel the time is right based on improved specifications: up to 8 stops of IBIS, sharpness, focal length width (RF15-35mm/2.8, RF14-35/4, RF100-500mm), extending design for compact storage and reduced weight in some cases, improved minimum focus length (RF100 macro, etc).
My EF16-35mm/4 is my most used lens and used in difficult circumstances with no problems but I won't upgrade to RF14-35mm as the filter cost alone makes it cost prohibitive. If my EF16-35mm dies EF100mm macro die or covered under insurance claim then it will be a no-brainer to go to RF.
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