WWE is being clever with this feud, they perhaps were undecided on whether Cody or Sandow was the next guy so by doing it this way the fans almost will decide it... So far Cody has the edge for me...
As to Cody in general, he's an interesting case... Physically he is the worst wrestler I have seen, you have no choice but to suspend disbelief with him as he doesn't look like he could kick Hornswoggles ass in a real fight. But then your member his name and lineage and realise you don't grow up son of Dusty and brother of Dustin without being tough, so I get the feeling Cody is a secret badass, he must have been bullied terribly about his "gay brother" when he was a kid...
Cody's strength is that he is able to adapt very easily, to new character traits and methods. Of all his characters, the best so far was "masked" Cody. That gimmick to me was when he should have been pushed to the World title. He was pretty believable as a "scarred" individual, far more so than Kane ever was... he was able to get across that air of having PTSD from his injury and it affecting his sanity. The paper bag thing was also very clever, using the most simple of props in a very sinister way.
Sadly I think two things did for "Ugly Cody", firstly Kane's return (Cody unmasked weeks before Kane came back with his), personally I think there was room for both and even a feud with them... but I actually think the Be a Star stuff killed that character, it too started around the same time and good as Cody was with that gimmick it did play very close to "bullying" behaviors of the kind the Be A Star campaign would be anti... Paperbagging someone cos you think they're ugly, self hatred, feeling/telling others they're disfigured, different are things that campaign would want to stop kids doing, so seeing them onscreen would not work. One of the bad things of PG sadly is that even when we all know kids are sophisticated, adults will never given them the credit to decide for themselves or god forbid they ever have to actually parent, so we can't see it at all...
So Cody ended up with the "Magnum" and entertaining as his moustache has been, I sense it's quickly becoming time for Cody for "man up" and he is doing in this feud with Sandow. It's a feud that can still see him a heel at the end of it as really he's only after the belt, but the fans are taking to him - not on the same level as a Bryan or Punk but certainly more than they did for Ryback. As it's poised now you could have a cash-in/double cash-in/one win being invalid... new ground for the MITB and thus a better launchpad for whoever ends up with the title.
As of today, I say Push Cody as the eventual winner, which means Sandow gets the title first, from Christian at Summerslam.... Have Cody show up with Vicki and yep as he has the original contract, he too can cash in and does so when Chrisitan unprettiers Sandow... Rhodes wins and celebrates with Christian and Ricardo (who cost ADR the title) and they have a mini stable feud against ADR, Sandow and Barrett.