It would because names only mean something across one gen and one gen only. N700 is not a direct successor of (N-1)700. A $500 N gen GPU, however, is a direct successor of a $500 N-1 gen GPU.
That way, RX 6700 XT is a comme ci, comme ça successor of 5700 XT but 7700 XT is more a successor of RX 6700 non-XT with RX 7800 XT, inflation adjustments being made, equalling RX 6700 XT's MSRP and thus being a direct successor thereof. At $400, 7700 XT is effectively succeeding RX 6600 XT ($380 MSRP).
Of course this naming is a wee on a misleading side but a properly seeking end user would end up comparing $ per FPS and not FPS per names.