He would have been better then Honky Tonk Man. Maybe the Model, The Barber, Orndorf, or Hercules maybe.
Eh, Honky had heat. Honky's IC Title reign was a lot like Joey Ryan's PWG Title reign. Neither produced many good matches, but there was a real purpose behind them in the story of "Who can finally beat them?" On one hand, you so desperately wanted to see anyone else with the IC title, but on the other, once Honky lost the belt, you were left without one of the biggest stories of the company.
As much as I disliked HTM's title reign, I'm not sure who I would have given the belt to. At the time, the WWE was really hurting for those midcard heel workrate wrestlers. You had Rick Rude, but the guy didn't have any good WWE matches until '89. Ted DiBiase would have been perfect, but he was still in the main event scene at the time. Honestly, the only real option was probably Greg Valentine. No one else really fit the mold of what an IC champion was supposed to be like at that very moment.