I have always hold the thought that the H2 should be more free to be larger to support higher end ports like a full HDMI port, and seeing the C70 have mini XLR ports for audio.
At first with the smaller XPSC sensor I thought the XC10 style body (without the built in lens) will be very suitable option as well. A rotating grip that benefits a video shooter, still large enough to add internal ND filters and maybe still enough space for the ports mentioned before.
Seeing the XT4 got larger and moved in the direction of the "perfect" hybrid camera that can do both photo and video, even though the only thing left is to have an even larger grip that the X-H series cameras have as an advantage over the X-T line. This is not enough and I still think the move on the XT4 makes the possibility of the X-H series to move higher in to cinema realm.
(fan, no over heating, unlimited recording)
MAYBE the C70 is over kill and too large for an ASPC sensor so do consider the XC10 size comparison here https://camerasize.com/compact/#615,772,ha,f that the size doesnt really increase that much but gain many more benefits with the ports once again. (Its not as wide but its definitely going to be a longer body for sure)
Do not im not thinking of the exact same body but just a similar theme of larger body to have room for a more capable video camera.