I see that or a highly clocked N32 as the 7800XT options and both will probably perform around 6950XT levels. N32 would give AMD a bit more pricing freedom because the die is 33% smaller than N31 but if they are running similar power envelopes then board costs are probably a tie so overall BOM probably won't be that different. If they released this around £550-600 it would be a better option than the 4070 IMO.
I'm leaning more towards the latter with 7800xt being Navi32.
If there is anything to the rumour that Navi31 fell short of its performance target due a hardware bug, then if these do not affect Navi 32, at 60CU, that combined with a bump in clocks would surely leave no room in the stack for a further cut down N31 with 70CU. They'd be within spitting distance! Setting aside the bug rumour, smaller dies tend to pushed to run higher clock speeds anyway, the gap feels to narrow.