On to scarlet. Considering the amount of money it took to build the RED One, and the exponentially larger amount of money it would take to build smaller electronics, does everyone really expect a totally new camera never seen before; beating out Sony, Canon, JVC and others? With a staff of people feverishly working to iron out the kinks in the current RED One, and given it's only been available for around a year and a half, how could they have time to develop a camera from scratch?
What seems more likely is that they will use there expertise learned from building the RED One to modify an existing platform and make a "tuned" version of a street camera; examples being JVC GZ-HD7 or the Canon HF10. They could upgrade the lenses, increase the processing power to handle 1080p, and adapt the camera to fit the platform of the RED accessories. This would give them the edge over the competitors and provide the performance we all want.