There's been a lot of discussion on this topic. Canon seems to splitting the lines to match Nikon's offerings. The x0D lines will be more of a competitor to the Dx0 lines of Nikon with the 7D being Canon's challenge to the D300. I could even see them making a FF model of the 7D to go against Nikon's D700. Canon might just put out a 1D MarkIV to go against the D700, but who knows.
What we do know is that Canon has finally seemed to waken from a slumber and is pushed to challenge some of Nikon's offerings over the past couple of years and give high end features to lower priced DSLRs. This will be good for both Nikon and Canon users. I was thinking of jumping ship to Nikon, but I'll have to see if the 7D is as good as it seems.
Canon also introduced the 15-85IS and 18-135IS to counter Nikon's consumer offerings. The 17-85IS just wasn't on the level of the Nikon 16-85VR and Canon didn't have a lens to go against the 18-105VR.
It is my opinion that in introducing the 7D, Canon has created a new line of dSLR camera (there are currently five readily identifiable SLR lines: the 1D line [APS-H], the 1Ds line, the 5D line [both full-frame], the Rebel line, and the 10D/20D/30D/40D/50D line [both APS-C]). I think that a 60D is coming.
What do you think?
If anyone here has inside info, lemme hear it.