well don't forget what TUF was originally for, to reach out to a wider audience through the reality TV angle.
they have all the fighters they need in the UFC already, the main goal of the show is not to find the next champ (even tho they make it look that way) but just to show the average joe a romanced/semi-staged life of a fighter and get them to watch the UFC and buy PPV.
it's only to spark interest, it's not really designed for those who are already fans and know everything about the UFC. it's for those who have heard of the UFC but never really know what it's about.
in that regard, they make a pretty good job.