Really, what is the point of that division again?
I've always seen the X Division as more geared towards a specific style of wrestling. more fast paced, high flying, etc. now granted, that style is generally geared more towards cruiserweights, but it can also allow for heavier competitors to come in and have some good matches without silly weight considerations.
see Samoa Joe. this also allows for the potentiality of say a Rob Van Dam or a Sabu, just as a for instance to have an opportunity to step into that division and have showcase matches. in a cruiserweight division they would be too heavy for that.
now Steiner, I won't say he's been great, but he has improved a lot over his disastrous E run of a few years ago. he has a high enough profile and enough personality that if used right, he could draw attention back towards the division. assuming it was done right. I know, I know. . .