Antonio Cesaro's reign is actually perfect. Have him retire the U.S. Title and bring back what he considers to be a "superior championship", the European Title. Once someone beats him for the belt, then they can just keep the Euro Title for whatever reason.
Personally I think that if they brought back the Cruiserweight, or Light Heavyweight belts, then it should be held by people on all levels of the card. Like every once in a while, someone like Punk, Ziggler, Miz, Christian, Kofi, or Cody could fight over it and make it feel like a big deal.
They should honestly bring back both, as well as the Hardcore Title.
I think his idea is to elevate the belt itself by having a top star carry it around and make it look like a big deal. When The Miz held the belt last summer, he carried himself like a top star and he hyped himself up as Intercontinental Champion.
Sheamus or Randy Orton could really make the belt look important. Beating one of them for the Intercontinental Title would do more for someone's career than beating Kofi Kingston for it. I think Wade Barrett is doing a good job of making the belt important right now. Barrett has been directionless since the fall of Nexus, but he's kept fairly credible and still carries around quite a huge bit of heat from the Nexus angle despite it happening over two years ago.
This is subjective to your opinion. The US title has more depth and history behind it. If focused in the right direction, the title has a higher glass ceiling than that of the European title.
In kayfabe, The United States Championship IS equal to the IC Title, but since the end of the brand split, the U.S. Title has been bumped down to Euro title status. In 2012, The U.S. Title has been held by lower level guys while the IC belt has been held by multiple former World Champions. In fact, I think the purpose of Zack Ryder winning the title at TLC 2011 was to transition the U.S. Title down to European Title level.