What was his name? Wayne Weems or something like that? Getting guys like that off the show before it starts is a good idea. I don't think it's fair to let guys into the house that aren't 1/4th as talented as the rest of the guys. How would Rampage feel if he got stuck with a guy that gets knocked out in the first 15 seconds?
Having the fighters fight their way onto the show is a good idea - not telling them about it is not. They should have told them that they were risking coming out there if they lost in the first 24 hours. Bring your 'A' game.
As for the two best fighters already fighting each other, then so be it. They would have done it on the second episode (in last year's format) instead of the first. This format doesn't change the fact that the two best fighters could have already fought each other.