I think rico would make a great CW Champ. He's not that large, as well has he has great wrestling skills. Imagine him just countering a high-flying-triple-pheonix-hurricanrana-bomb...or something and then grabbing the wrestlers balls and smiling. That would get over great.
Charlie Haas did a great job of selling Rico's stuff, and I'd love to see Rico feud with Dupree for the US Title (when Dupree finally wins it), but first is first, and that is the Cruiserweight Division. I personally think Chavo is great as Champ, though.