I still think the division is doing pretty well the problem is anyone that is considered in title contention right now either doesn't deserve it or is taking a hiatus.
Had Rampage fought Rashad and won he would have earned it.
Couture, Vera, Rashad, and Silva haven't really earned it. Both Rashad and Silva were just beat by Machida and they were both dominated. Vera has been very lackluster since dropping down to LHW. He's only beaten a handful of mid-level fighters. Couture is coming off of a loss and a win over Vera doesn't really warrant a title shot.
Since Rampage was locked up with Rashad (and now on hiatus), i believe that's half the reason Shogun got his crack at the title. Plus a Shogun, as you said, sets up the division alot of interesting title fights and an anticipated rematch providing he doesn't just walk through Machida.
An interesting question is, where do Lil Nog and Luis Cane fit into the picture after their fight. Sure Rogerio really shouldn't be in title contention after 1 win but Cane has been on fire. A win over a Nogueira should really catapult him into the mix.
I would say have a 4 man tournament to determine the next #1 contender. Winner of Evans/Silva vs. winner of Couture/Vera. Unfortunately this locks up the LHW belt for awhile but atleast a clear cut #1 contender will emerge. Have the loser of Shogun/Machida fight the winner of Nog/Cane.