I got this rumor, it is the first time I hear about that. And here it comes…
The rumor says that Canon will announce a new entry-level DSLR that is not part of the Rebel/xxxD line. A DSLR that aims at the budget-conscious customers out there. This DSLR is said to be the lightest and smallest DSLR Canon has ever made. The source also says that this new extra-small DSLR is an attempt to counter the not so good selling figures of the Canon EOS M (price & specs). In other words: Canon will try to offer a small and compact DSLR as alternative to the EOS M. A DSLR that is almost as small and light as a mirrorless camera. The new DSLR will support EF and EF-S lenses, and it should not have the AF issues of the EOS M. And there should be also a new kit zoom lens for this new, super-small DSLR, a kit zoom that is also said to be light-weighted and of small size.
I do not really know how Canon can make a DSLR much smaller than a Rebel. There are for sure some possibilities to make it smaller, and for sure to make it lighter (using more plastic?). The question is: how small and compact it can get.