Disagree. Also remember that Affliction is done.
Competition is EXTREMELY important. If the UFC was the only one, we might maybe get to see some uninhibited fights. But, I'm sure we'll pay out the ass for them and there won't be much pressure for the UFC to deliver.
This huge free card was a big incentive. It's possibly a reason Couture/Vera is free and the definite reason for UFC "Main Events" that counter programmed it.
I think that co-promotion is a good idea occasionally. Maybe get the UFC and Strikeforce to put on a fight once a year for the fans. It could have Fedor v Lesnar, Rogers vs JDS, Mir vs Werdum, Mousasi vs Machida, Hendo vs Silva II, Mayhem vs Alves, Shields vs Fitch...
For cliffs: Competition is really important, in the long run and the short run. In the shortrun, we have two companies trying to outdo eachother in production value and fighter quality.
In the longrun we have more fighters able to fight routinely enough to be professionals = more quality. And with competition comes more competitive pay, which is incentive for higher quality athletes to go to MMA.