Either that, or they had some kind of business interest in remaining asleep.
Their entire video department management strategic planning team should probably be fired, IMO.
A friend of mine is (was?) a Canon video dealer and he used to say they never got into the upper end of video cameras because they made lenses that were very profitable for the other manufacturers and they wanted those relationships to stay healthy. Could be BS, but sounds reasonable. My guess is there's a lot of profit in glass and a lot less customer service.
I think glass is Canon's real moneymaker. I think that's why RED started making their own glass and keep adding accessories. That stuff is more profitable than bodies.
My question is why Nikon has been sleeping. Those guys had no video market to protect. I just spoke with a Nikon dealer and he made it sound like Nikon was really hurting... as if Canon was really sticking it to them in the marketplace. Not sure how real all that is.
I'm not convinced Canon "failed". Canon video bodies have been pretty dismal... but that's just one little piece of the whole puzzle. Has Apple failed because FCP is getting pwned by AVID and Adobe right now? No.
I think it's fair to guess Canon's slumber is ending and technology is sitting on the shelf waiting to be sprung when they think the consumer market is more ripe.