That being said, I'd love to see Nate Diaz vs. Diego Sanchez. That fight would be complete fireworks. On the ground and standing. I'd say Diaz has the advantage standing, but Diego has that never say die attitude and pace which works well for him. He can be the inferior striker, but remain competitive on the feet. (You know.. Unless he's fighting a 155 BJ Penn.) On the ground is where I'd really want to see it. I'd say Diego has better wrestling, while Diaz may have slightly better BJJ due to having better submissions, but grappling/scrambling wise, it's a toss up in my opinion. This fight would have to happen. Diego Sanchez vs. Nick Diaz was a fun fight to watch, so I wouldn't expect anything less from this.
He stays "competitive" because people score him points for aggression. He is a better version of Clay Guida. He can swing and miss 10 punches in a row but his fans and some incompetent judges will give him some points for that.
I think Nate would school him bad. His BJJ is much better, but Sanchez is hard to sub. But if Diego sat in guard and went ape shit I have no doubts Nate would sub him.
On the feet it isn't close.
Diego may be able to steal a round from being on top. But he isn't on Nate's level.