Although I don't completely agree with everything you said, Grapple, I don't discount a lot of it either. He is a very aggressive in your face fighter. He never has a boring fight. I can see him getting dropped and finished by all but Diaz. And even though he wouldn't fight him, I could see Frankie stomping the crap out of him. Most of that is why I want to see him in the UFC though, so he can prove my assumptions wrong!
Personally I see Eddie as a Frankie Edgar 2.0. All of the technical prowess Edgar possesses, but with never ending aggression, KO power and killer instinct. I think he'd eat Frankie alive in the octagon.