Whilst I like this idea, it is basically a re-incarnation of the Nexus storyline. Also how do you see the storyline ending? With a story line as big as you are suggesting, this would take the majority of WWE's TV time, and if you have the top-card faces such as Cena, Orton, Sheamus together against this mid-card faction, cant you just see the babyfaces conquering the faction like they always do? Which would end in the evitable disappointment which the IWC always complains about.
My suggestion to end it would be, seeing as we are using low to mid card superstars, have groups attacking the babyfaces, but after a while, you see individual vendettas start to form between individuals from the faction and babyfaces that we have never seen before for example) Drew McIntrye vs John Cena?
This will allow the faction to peter out without any real disappointment, we get fresh, new fueds that we have not seen before, and the low to mid card get on TV and Pay-per-views more often.