They pretty much treat him like a face already (the constant references to Fandango-ing) with the exception of him fighting the faces. If the guy is supposed to be a heel, why do they keep going out of their way to show the crowd smiling and dancing to his music?
I agree there are way to many faces right now. Personally though I think this gimmick is a joke, no one can legitimately take this guy serious as a World Champion. He is a mix of Val Venis/Rick Rude plus dancing in my opinion.