I prefer that they change his name back to Harry Smith. Seriously, DH Smith sounds so generic. It makes me think of an author. "Written by DH Smith"...
As for the only place he'd fit would be in Randy Orton's stable, I disagree. Not every 2nd & 3rd generation superstar that gets called up to the main roster has to be a heel or in that group. Try something different. Push him as a face mid-carder on SmackDown and build him up. Being British Bulldog's son will easily help get him over. He was receiving good responses from the crowd during his first two weeks on RAW before he disappeared.
Also, change his music back to "Rule, Britannia!" like he used when he made his debut and give him some different attire like blue trunks with the Union Jack on the front (sans the Maple Leaf on the back), blue kneepads, and white boots. Keep the Running Power Slam as his finisher too. He could definitely be over in no time. Just give him a chance and see what happens.