We agree here. Canon's point and shoot market is going away to the Chinese. This works to put Canon on a more level playing field with Nikon and Sony as they don't have that market to lose.
I made a similar comment to this before. Sony's lower end model Vlogger camera the ZV-E10 got a lot of competition from the DJI Osmo Pocket 3. I don't think SONY CAN COMPETE WITH DJI at the lower end. Sony is essentially abandoning the lower end cameras in this range and constantly moving up stream.
I've made the same comment about lenses. Viltrox, Laowa, etc. have now gotten leaps and bounds better at making lenses. Before long they will be up to the quality of Sigma at even lower prices. If Sony wants to keep selling lenses the only path for them is to go upscale. They have a new 85mm f/1.4 and a 24-70 f/2.0 on the way. Canon is protecting their full frame lenses but that comes at a price as well.
I completly understand this logic but this seems like an outdated strategy. For most people the R100 with a kit lens wont be discernable from their smartphone which is already in their pocket and way less hassle. Your viewpoint is coming from someone who grew up in a world where cameras where needed for photography. In this new world everyone has a camera in their pocket and needs something substantially better to justify the downsides of a stand alone camera.
I can't let my MBA go to waste

But seriously I agree. Its fun to make predictions and see how it pans out. Its a forum where people express their opinion. I'm not tellilng you to quit trying to convice me that that Canon is following the right strategy. I simply disagree and maybe note a few points that I do agree with.
Furthermore I believe Canon is already moving in the direction I'm suggesting. The V10 is an attempt at this market. The main improvements to the R5mii were on the video side. Last year I was saying they should get rid of the M-line and focus resources on the RF mount and that is exactly what they did contrary to the people here that said the M line was great and profitable.
From my post in September 2023:
Later in October 2023 Canon announced that they were discontinuing the M line. I was called a troll then but seemed to be in line with what happened.
My OPINION is that Canon is moving in this direction but they have some limitations in sensor tech and the expectations of an existing older userbase. The R5mii is for the newer crowd and the R1 is for the older crowd. If they could've delivered the R5mii sensor at 50MP and 4ms readout they probably would have. And if they would've been able to deliver that for $4,300 I would've been gearing up to bash Sony if they weren't able to respond.