Why shouldn't Lyoto have been hyped? He barely got hit in any UFC fight until he fought Shogun, and he had a style we hadn't really see before. Not only that but he seemed impossible to take down, he threw Ortiz around like a rag doll. He also made Thiago Silva look like a complete amateur and Thiago is no joke.
He went to a very close decision with both Shogun and Rampage, and his only convincing loss might have been more a case of luck than superior skill on Shogun's part.
Machida didn't dominate the division like some thought he might, but who does at 205 these days? He's certainly a top 5, probably more a top 3 and has held the title. Not everyone will be an Anderson or a GSP - not Cain, not Shogun, and not Edgar. Aldo? Doubt it, but reality is Machida rose to the top like everyone thought he would. That's not being overhyped entirely, that's delivering on a high percentage of that hype.