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I disagree with the idea that a guy like Daniel Bryan, who is the US Champion, or Kaval, who won NXT, or even Rey Mysterio, who is a former World Champion, competing for a hypothetical Cruiserweight Title has to be viewed or portrayed as a demotion. If built correctly, it could simply be considered a DIFFERENT division - not better or worse. Much the way that the ECW TV Title was portrayed as being on par with the ECW World Title, at least for a time.
Look at the real life situation of a guy like Randy Couture; a man who won both the Light Heavyweight and Heavyweight UFC Titles. If he were to go back down to the Light Heavyweight division and compete, I don't think it would be seen as a demotion or fighting for a lesser title - just a different title.
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