Agree with you entirely. Here’s my own take regarding Canon’s approach with EOS R:
What Canon is doing here is providing the consumer with options that span the Entire Marketplace. Literally flooding it. And all of the new R cameras are tied together by the growing library of RF lenses, and the game-changer which is DIGIC X (and all of the capabilities that this core technology gives to such a growing assortment of camera models). The most recent releases are now beginning to appeal to those in the EOS M market. There’s of course still enough separation (at this early point) that M remains a very viable choice for many folks (including most of us

).
This hugely successful business model (of flooding the market with variations) has been applied by businesses of all types throughout history. One just needs to go to the grocery store to see it in action. Check the laundry detergent aisle, or soda pop, or cereal aisles. How about the exploding “sports drink” section?!
I think this is a winning approach for both Canon and us. If all of these products were merely mediocre, then they might in fact be “over-extending,” but holy cow these cameras really Rock.