I see a way to use this to help someone else finally get over. This will be a bit of a stretch, so bear with me for a moment here.
The man I see being able to get over with some serious heel heat is a second-generation star, a man who has held championship gold in the past, a man who is currently floundering in comedy storylines that are going absolutely nowhere, a man named...Dustin Runnels.
Let's set the scene. We all know that Goldust and Hornswaggle have been paired together for quite some time. We also know that little Horny has a fascination for the divas, and especially for their shower habits. So here's the scene. Some random diva, let's say Maryse, is in the shower, and gets surprised by Hornswaggle. She grabs a towel and runs out, dropping a wet rag in the process. Hornswaggle picks up the washrag and runs after her, rag in hand. Remember this, it will be important later.
In the ring, Chavo is in the midst of a match with a random jobber, who it is doesn't matter, when they are interrupted by the towel clad diva and washrag toting midget running to the ring ( know, that makes absolutely no logical sense, but when does a Hornswaggle bit make sense?) As Horny chase the diva into the ring, Chavo seizes the opportunity to take a cheap shot at his arch-rival (poor Chavo) and nails him with a diving elbow. The diva makes good her escape, and Chavo zeros in on Horny. The midget is looking terrifed, begging Chavo not to hurt him.
Cue Goldust's music. Goldust runs out to the ring, wig on, robe on and fully closed, for some odd reason that we will soon discover. He slides into the ring and Chavo bails out. Horny finally drops the wet washrag in the center of the ring as he claps excitedly for his friends intervention. We hear Chavo on the outside of the ring, screaming at Goldust. "You're a joke! Your wrestling's a joke! Your old man's a joke! You're nothing!" Yes, cheap steal from the Karate Kid.
Goldust stares Chavo down for a minute, then reaches for a microphone. The promo is the important part here. It starts out in classic Goldust style, with his over-the-top announcer voice, complete with stutters, but his voice slowly changes over the course of the promo.
"Y-y-y-ou're right, Ch-Ch-Chavo. I am a joke. My father is a hall of famer. My little brother is wrestling in main event matches alongside the future of the company, Randy Orton. And me? I wear a long blonde wig to the ring." With that, he rips the wig off and throws it into Chavo's face. The voice by now has started to lower, becoming more intense.
"I had to put this stupid robe on before I ran out to the ring to save my little buddy here, just to keep up with my normal image." With that, he rips off the robe, revealing a white t-shirt and jeans instead of the normal gold jumpsuit. Hornswaggle is looking at him with concern now. At this point, Goldust notices the washrag lying in the middle of the ring. He picks it up, stares at it for a moment.
"My father is a legend in this business. He is the American Dream, Dusty Rhodes, if you will, and me? I've allowed myself to be turned into a sideshow freak in gold makeup!" At this point, he starts rubbing his makeup off with the rag. Its important here that he does a pis-poor job, so that the makeup is now streaked and somewhat scary looking, his face a mishmash of black and gold with skin showing through.
"Well, no more! I am sick of being a sideshow freak! I'm sick of being a stuttering, comical, lovable buffoon! And most of all, I am sick of..." And at this point he turns and points at Hornswaggle, "You!!!"
Now, Hornswaggle looks scared again. Goldust throws the rag in the midget's face, then follows it with a big boot. He picks the midget up, throws him across the ring. He picks him up again, slams him down to the mat, and begins stomping away at the little guy. Chavo watches, laughing at first. The laughter quickly turns to horror, and he sells the attack as if it is a shoot, calling for officials. He climbs into the ring to try and stop the attack, only to get laid out by by Runnels (yes, by this point he is officially Dustin Runnels, not Goldust).
This not only turns Runnels, it also gives Chavo a chance to turn as well. By coming to Hornswaggles rescue, he seems like a hero, of sorts, and gets to be the first victim of the new, darker Runnels. If the beating is severe enough, it gets Hornswaggle off of tv for awhile. And Runnels has a new look. He plays the character as if he has totally lost his mind. He continues to wear the makeup, but now instead of a gold face with black highlights, carefully applied, it looks as if he just takes the paint in both hands and smears it on his face. He stops wearing the gold jumpsuit and just starts wrestling in jeans and t-shirts. And he displays a brutality he has never shown before.
Thats just my take on it though...