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I haven't really been watching, but I like the theory of this storyline. TNA needs to generate some interest for itself, and I think the best way to do that is with compelling stories, rivalries and characters. Styles vs. Magnus -- a rivalry that spawns from Styles defeating Magnus in the BFG Series and earning his ire -- would be exactly the sort of thing that I could get behind in the promotion.
Styles winning the World Title is nothing really new for them, and feels a bit autopilot at the moment. Plus, he might be leaving the company at the end of the year. Why not use him to make a few new stars before he leaves?
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