It's really not a bad move at all. Stop thinking "ooo he was made to look bad" and instead look at it from a story and future perspective.
He's what? A babyface. Mark Henry is what? A monster heel.
So, he loses NOTHING by getting destroyed by Henry considering he has destroyed Big Show, Kane, and Koslov. Doesn't really make him look bad.
What does it actually do? He gains SYMPATHY, the best thing a babyface can have. Plus now he has a reason to be pissed off.
People think he should have went against Tyson Kidd. Why? So people can not give a shit about his match? I like Tyson as much as the next guy but he is NOT over. Curtis was a (minor) part in a big feud.
Not only that but you have no idea where they're going with this. Maybe eventually he costs Henry the match against Sheamus. Then has a feud with Henry where he mans up? Even if he doesn't beat Henry, putting up a good fight as a babyface against on of the top heels on the brand is a good thing.
Bottom line is it didn't hurt his character because of how monstrous Henry is. It gained him sympathy. Plus it's all just starting so you don't even know where this is going. You guys, just like women who bitch at you and accuse you of sleeping around when you come home 5 minutes late, are jumping to insane conclusions about the demise of this guys career.
What do you think the average fan remembers more? A match against Tyson Kidd, or getting the shit beat out of him by Mark Henry and coming back to fight again? It doesn't matter how much you or I like Kidd or any other midcarder, Henry is more over and he was beatdown by Henry and will come back next week in all likelihood.