Looks like competing against the Canon 400D and the Nikon D80 wasn’t enough so they decided to go after higher end models.
http://www.digitalcamerareview.com/default.asp?newsID=3044
http://www.mobilemag.com/content/100/336/C11983/
http://industry.engadget.com/2007/03/08/sony-shows-off-alpha-dslr-flagship-and-high-amateurs-models/
http://gizmodo.com/gadgets/digital-cameras/pma-07-breaking-sony-alpha-flagship-first-pics-242663.php
I would surely love to get my hands on Canon's 1D Mark III but maybe this is the camera Sony intends to compete against.