Dream is not NXT Champion level yet imo. Looking past the fact that he might be a pedophile, he isn't ready to carry the strap. If they want to take the belt off Cole, Finn or Lee are far better options imo. Kross just showed up, but he looks streets ahead of Dream as well.
I think the way they did it was so Io can beat both of them in singles match, potentially when crowds are back. But yes, it is all kinds of messy. At least the match was awesome and the Queen is finally the Queen.
I agree with you on Big E and Kofi. They work their asses off, and just because everyone isn't throwing a pipe bomb doesn't make them complacent. I will say though while I adore Xavier, I think he is the most "tag team" wrestler of the group. I can't really imagine him as a worker's title champ. And that is what the CW title is. Also before moving it to NXT, winning the CW was like a burial.