Yeah like everyone on this thread says. Carlito has talent (charisma, decent high-fyler), but not only would he fall into irrelevancy quick, what could he contribute to the product. If they just let him loose the guy could be a great heel X-Division Champion.
Carlito has the potential to be very entertaining in TNA but I feel like he has the "WWE" sign above his head now wherever he goes so that probably wouldn't go too well with TNA fans. Especially if the company is trying to establish themselves without needing guys from WWE.