The K-5 will probably be to the K-7 what the K20D was to the K10D. It will build on its predecessor's strengths, while improving on its weaknesses. Not a major change, but a good evolution of a great product.
With the K-x being the king image quality in low light for an APS-C DSLR, Pentax is showing it can offer products with better performance than competitors with much bigger R&D budgets, like Canon and Nikon.
But Pentax still needs to catch up with competitors on two points: the flash system (which is a bit outdated now) and the AF performance (not so much speed, but accuracy and reliability under all sorts of lighting conditions). With cameras like the D300s and the 7D in the same category (spec-wise), and, more important, cameras like the 60D and the D7000 in a similar price range, the K-7 is still far behind competition in terms of AF speed, accuracy and reliability. And I know first hand, having used all three of them (BTW, the 7D is the fastest and more accurate, but the D300s has the best tracking in AF-C — the K-7 just doesn't compare to either one).
A bit more DR at high ISO on the K-5 would be a welcome addition too. My K10D beats my K-7 hands down there (by about a full stop at ISO 1600). But it's not too big of an issue IMHO.
The rest is just perfect as it is: the K-7 has killer ergonomics, excellent image quality at low ISO, decent image quality at high ISO, a silent shutter, a small, light but tough body, a pretty efficient SR mechanism, a super level of customization, intuitive menus, a nice viewfinder, etc.
All these features are huge strengths, but if the K-7's successor is still lagging behind in terms of AF performance, products from competitors will still get the upper hand.
If the K-5 isn't a match for the D7000 or the 60D in terms of AF accuracy, this will just end up being another "Pentax cameras are great for advanced enthusiasts, but for serious photographers doing action or sports photography, they just can't match a Canon or Nikon DSLR". And that'd be sad...
It's about time Pentax cameras match the big two in terms of AF performance! If the new SAFOX AF system is has good as rumors claims it is, the K-5 might be the first Pentax DSLR to be equal or superior to products like the 7D or D300s on ALL aspects, except maybe the flash system, where Nikon is still absolute king (Pentax cannot fight competitors on all fronts at once — the flash system improvement will come in time... let them improve the AF first).
Personally, I got a pretty good feeling about this new AF system.