Well first off there isn't much time left in 2012 & I'm assuming the whole tournament (if it was to happen in 2012) would be over the next few weeks of programming & be centered around Survivor Series 2012.
16-Man KotR 2012 Bracket:
-Sandow vs. Ryder w/Santino: WINNER-Sandow
-Orton vs. Tensai: WINNER-Orton
-Sandow vs. Orton: WINNER-Orton
-Brodus Clay vs. Del Rio: WINNER-Del Rio
-Kofi(IC) vs. Cesaro(US): WINNER-Kofi
-Kofi(IC) vs. Del Rio: WINNER-Del Rio
-Orton vs. Del Rio: DRAW
-Kane vs. Rey w/Sin Cara:WINNER-Kane
-Bryan vs. Rhodes:WINNER-Bryan
-Kane vs. Bryan: WINNER-Bryan
-Barrett vs. Gabriel:WINNER-Barrett
-Ryback vs. Miz:WINNER-Ryback
-Ryback vs. Barrett: WINNER-Barrett
-Bryan vs. Barrett: WINNER-Bryan
FINALS: Triple Threat Match - Bryan vs. Del Rio vs. Orton
To me there are only 6 guys that would make sense to win the KotR tournament:
-Ryback: The obvious choice & young face to win it all. His beef is still with Punk & adding any "king" gimmick or accessories is not needed as of now. I'd have him gain a strong round 1 victory over a relevant heel like Miz only to be attacked by Punk or someone to lose to a strong heel like Barrett that could win the whole thing.
-Damien Sandow: While he would be my personal favorite to win, he is still too relatively fresh & young. Rhode Scholars are too involved in the tag picture to forsee "King" Sandow.
-Wade Barrett: A great pick & probably my #2 or #3 but my biggest problem with Barrett winning is that he JUST got repackaged & is the farthest from needing a "king" gimmick right now. Not to mention ANY accomplishment would propel him right now, so it doesn't have to be KotR.
-Kofi Kingston: Another babyface that would be a logical pick. I just don't see Kofi as any "King" let alone that I don't think it would push him much farther (if any) than he is already being pushed. Let him prove strong in the tourney & lose to a main eventer.
-Daniel Bryan: Besides Sandow, my pick to be "King". Unlike Sandow he is ready now but Bryan has the same problem as Sandow in that he is too involved with the tag titles to do much with the gimmick. Let him build tension with Kane in the tourney, only to have Kane cost him the finals.
-Alberto Del Rio: A great heel, already somewhat "royalty" & constantly talks about destiny. He needs something DESPERATELY right now & this would be PERFECT. The biggest complaint I hear about Del Rio is that he is stale & hasn't changed a lick of his character since debuting. So extending the money & power ideas to royalty & adding a layer to Del Rio I think could do wonders. It works best with him & for a guy that has had both world titles & won the largest rumble ever, this is the one thing that could still benefit him & it makes the most sense in my eyes for Del Rio to walk away the winner.
WINNER: "King" Alberto Del Rio......but you already knew that!
3) Would you change the prize (crown, cape, throne)?
No. Keep the tradition. And while I see your point for an official KotR belt it is belts like that, that are meant for show, that take away from the other belts prestige.