The problem with people like London is that there is still a glass ceiling that needs to be smashed for guys his size now. Kendrick and Mysterio have broken out of the cruiserweight label and risen above into becoming part of the rest of the show, but there are only 2 titles now and I can't see either of those becoming a champion any time soon. London is really a victim of losing the cruiserweight division (whether or not it was worth losing it has probably been discussed a 100 times, but certain wrestlers were victim to it), same with people like Shannon Moore and Jimmy Wang Yang, teaming up 2 US/IC contendors seems much more common as a team as opposed to getting 2 cruiserweights together (in addition to natural tag teams), Miz and Morrison or Rhodes/DiBiase are the sorts of teams made up of people who it is plausible for them to become a 2nd level title holder, with London I cant see it, the point I'm making is that titles are central to most storylines that are not the "Non Title Main Event", because most feuds end in a PPV match, I can't see people wanting to see London vs. MVP if it were not for the US title (example).
Another problem for London is that now Kendrick is strutting his stuff on SD!, if London came back to Raw people might start to remember Kendrick back in his Londrick days and be less callous to him, of course we know subconsciously he was part of a popular team, just like we know a lot of prior things about wrestlers, but if we were being reminded of it constantly (I mean that's all the 2 of them are famous for, so we would think about it) then it would not really work. If Kendrick is this good, then there is no point risking it to keep London happy, I thought he was the better of the 2, but I might well be wrong, because Kendrick is interesting me more and more each week.
Palumbo - Erm... Not too fussed about him really, one of the 10 a penny wrestlers, he was liked by affiliation, not for his character, I also could not get the idea of the Undertaker's American BA combined with him being gay with Billy Gunn out of my head when I saw him, it would have been nice for it to work out for him, but it never really got off the ground really, Michelle McCool got a lot out of it, Palumbo evidently didnt.
Sorry if this post is a bit wishy-washy, I'm awfully tired so my sentence structure might not be very understandable.