I think Matt Hughes great performance against a guy who severely underestimated him is giving him hype he isn't looking for. Hughes probably has a couple more great fights in him, but no title runs. He isn't over the hill as much as he is behind the curve. He has the old dog status so he will still catch people that think they can easily walk over him, but against game opponents like Alves (who beat him although he was overweight), Fitch, Kos, and GSP I just don't see him being up to the skill level.
Hughes was, and still is, a great fighter, but the new generation is here that raised the bar on skill level and I just don't think Hughes has improved enough to keep at their pace of growth.