I'm feeling deeply, deeply tempted by it.
It's a hugely appealing camera to me. With the image quality of the C700 FF, I can use it as an A-camera on the features, series and commercials I shoot. And with the compact size and comprehensive feature set built into the base body, it will work great for the few solo documentary-style shoots I do as well.
Also, it's the same price as a Sony F5! Less, when you factor in the need for the R5 or R7 for raw recording with the Sony!
I think you're exactly the kind of user Canon is targeting with the C500 MK II. It seems to me that C500 MK II is hoping to be a player in the segment currently occupied by the F55 and the Varicam LT which are obviously getting a fair amount of use in budgeted narrative work. Improved DPAF, dynamic range and low light performance could make the camera popular. The addition of 12-bit CRL that records to relatively affordable media could also make the C500 MK II attractive compared to the Varicam and F55.
Sony's new FX9 will likely be a good seller but from what I've read it doesn't seem to be the kind of camera that would be used to shoot an Amazon or Netflix narrative series. In the mid-tier narrative world where there is a budget for proper colorist the Canon's 12-bit CRL vs the Sony's presumed 10 bit XAVC seems a pretty huge advantage for the C500 MK II. Of course this is just speculation since the Sony hasn't been officially announced. I'm also pretty sure no one shooting a well budgeted narrative cable series will be asking me what camera they should use.
In some ways it seems like Canon did a reset with the C200 and now they are moving up market with the C500 MK II. Maybe there is still hope for a $10K C300 MK III and a $30K C700FF MKII but I don't know what those cameras would look like.