With his current gimmick I don't want to see him main eventing. As Bratish says, his gimmick is effectively WWE's answer to Barney the dinosaur.
He's a mid carder at best with that gimmick. I wouldn't mid seeing him holding one of the mid card titles personally, but I wdon't want to see him any further than that up the card with his current gimmick.
It's nothing more than an act to get the crowd going and to give a chance for a group of kids to get a once in a lifetime opportunity of getting in a WWE ring. It's a good gimmick as far as achieving that goes, but as far as being taken seriously as a legit guy, then no.
I think Clay as a heel has potential to be a bigger player, and I'm sure in time we will see that, but as the Funkasaurus, he's just fine where he is.
As far as Show putting him over, again, not while he's the Funkasaurus.