I'd say a CTS Coupe is the way to go for GM, as they seem to be shifting twards nieche cars similar to how Mercedes-Benz lines up their models. For naming sakes, lets call it the "CTC" for "Catera Touring Coupe." Back to business, if they can offer the car with a good balance of sport and luxury at a cheaper price than the Germans and on an equal level with the Japanese, it will spell trouble for cars like the 335ci and G35 Sport Coupe. The thought of a 400HP V8 CTC is also something that sounds great, as it would be a chaper alternative to the CL550.
Similarly, a cheap convertable seems to be a step in the right direction as well. If they can offer a retractable hardtop similar to the XLR and G6 Convertable, the CTC convert may be a good alternative to the upcomming 3-series convert and CLK as well. Again, it will be a matter of out-pricing the competition with better equipment and trim for a cheaper price while offering a similar level of refinement and capability. The new GM can do it, and the possibility of a model such as this shows what is going on at GM.
...I think the best news of the whole story was that they are still talking about getting rid of the DeVille and replacing it with something similar to the Sixteen. There has been talk about what is called the "ULS" or "Ultra-Luxury-Sedan" for some time now, and with the mention of a coupe, I seems within reason to consider a return of the El Dorado with what I would call the "ELC," or "El Dorado-Luxury-Coupe." Both would presumably be riding on enlarged versions of the Zeta platform, possibily a whole new structure designed by Cadillac, that would be able to accept a wide range of engines, but you could probably bet that the smallest engine (output) they would use would be the 4.6L Northstar currently found in the STS and XLR. A mid-line version would probably use the same 4.4L Supercharged Northstar V8 from the STS-V, and would be the main competition against the BMW 750i and Mercedes-Benz S550... But since the Germans like to play rough, I think we may finially see the V12 program go into production after the last debut of the engine was in 2003 I belive (an Escalade-V prototype had a V12, and was driveable). Figure around 550-600HP, naturally aspirtated of course, with full DOD capability matched with the ECVT transmission, and E85 fuel useage as well.
I don't think Cadillac wants to play games any more with the Germans and the Japanese, as they are the only front-runners in American luxury cars and trucks, and they appear to be dead-set on taking down BMW and Mercedes-Benz. Will it happen? I dunno, I just shoveled out plenty of speculation, but it all seems within reason...
It's all good news comming from GM, and it is just a matter of time before we see exactly what is going on... Seven months untill Detroit 2007, so we will see...