I see a lot of speculation and little fact here.
Fact: Hero (as I usually think of him) was released from his NXT contract.
Speculation: There was something that didn't go right between him and the main office.
Further speculation: Rumors abound that he was asked to improve his look and refused to invest in himself by working out, dieting, and doing the other things that would help his look. (Notice how further speculation is rumors)
Out-there speculation: HHH hates him.
All we know for sure is that the guy got released and we can draw one simple statement from that. For all we know, he asked to be released because he didn't feel like he fit in well with what was happening in NXT or even with WWE in general. Blanket-blaming HHH, Vince, Stephanie, or Stone Cold Steve Austin is just silly. I offer this idea: Dixie Carter bribed JBL to get HHH to release him because she wants to bring Hero to TNA to be EC3's beer-drinking brother, Billy Carter...(some of you will get that joke; others not so much).
Yeah, EC3 and Billy for TNA Tag Team Champs!
wk