I doubt Canon is losing a penny on any model on its roster. In fact, its margins are not thin and the R&D basically works on a trickle-down theory - what one can find today on a $10,000 model comes out the next year on a $5,000 model and so on. (prices quoted on a hypothetical basis)I'm sure that's how they justify losing money on the C700 at corporate. Plus there's the "it's our flagship camera," which supposedly will drive people to buy their lower end cameras. I just don't know if either is really true. Would it not be easier to recoup R&D expenditures on a model that would sell 10X more units? Especially since Canon seem incapable of releasing an updated lower market camera in a timely enough manner to not get left behind...
As to camera choices, with FS-7 price being hiked and C300 MKII's lowered, the old $8,000 investment gap is now down to $3,500. If you, as I presume, already own a ton of Canon glass, MKII seems like a better bet.
Unless Sony comes out with something newer and (much, much, much) better soon.