I hope that they do something with this angle soon. I enjoy it and it has potential, but now it's just getting repetitive and boring.
Maybe wwe isn't sure yet what to do, if it will be a repeat 123 kid type story, or something else. Or maybe they aren't sure who to have colin finally defeat in an upset. It will have to be a talented heel...someone who a win over would mean something, but unlikely to be a high card wrestler because they don't want the person to lose status.
I'll admit that the original 123 kid storyline, razor ramon was a perfect person for the 123 kid to defeat. he was talented, midcard level at the time, and they were able to turn the story around and let ramon become one of the most popular face characters for a long time.
If they do something similar, i'm not really sure who would be a good pick, in either ecw or smackdown. The only one I can really think of this gimmick working for, at least off the top of my head, is elijah burke. he's talented, perhaps not quite midcard level, but certainly deserves a push. and I could see him being a good face character if the push is done correctly.
again, this is all speculation, and wwe might not be repeating the 123 kid story so it may not matter.