With the supposed 'official' cancellation of WSX, I think that talk of him returning to the WWE will heat up now. As for the Cruiserweight talk, I wouldn't be surprised if the WWE told him to lose some weight and shape up, and then stick him in the CW division.
Shawn Michaels is foolishly carrying on using the DX elements, and I don't think that X-Pac would be put in with him because the spotlight is now well and truly on Shawn Michaels and the WWE title, not D-Generation X. I hope this DX can be well and truly buried, and that the WWE doesn't throw X-Pac in, in some half-assed attempt to revive it.
Him heading to the WWE is possible, or even probable now if WSX is done, but it will be interesting to see how much, if at all, the WWE wants him.