Swagger is really talented and can put on an excellent match with most guys on the roster. That said, he's limited in other areas, that being his mic skills, and his general demeanour. Contrary to what some people have said about his lack of opportunities, he actually had loads and hasn't been able to get himself over enough with the fans.
Swagger has been on the roster a long time, and despite some suspect angles over that time I don't think he's actually improved in the last few years. I think he's hit hit glass ceiling and that is as a midcarder.
That said, I don't know why he's not on TV. He is just the kind of guy they could use on SD so I can't see the logic of drafting him to RAW. That's unless they have plans for him.
NXT move would work, it would be refreshing and he'd have a the chance to put on some great matches. So yeah. Good idea. He's wasted at the moment.