It's nice on several levels. We're seeing 'Long Island Iced Z' finally getting something to do, years after he managed to get himself over and WWE frittered his popularity away to enhance Kane for a feud with Cena (got to keep Kane strong!). Technically, yes, it's a demotion but it's not like Ryder was doing anything on the main roster. It's years since he was involved in any form of noteworthy storyline and months since he lost to Cena in the US open challenge, his last meaningful match.
|Dick to the mouth finish there. Strong.|
It's nice for Mojo. Because he may actually get over this way. His kids' TV-like ever-hyped demeanour grated on the Full Sail fairly early into his initial singles run last year. Pairing him with the genuinely popular (and relatively likeable) Ryder, smartly positioning him as a guy Ryder's chosen to take under his wing, gets Mojo screen time but keeps him in a role where his hyperactivity can be a strength: Ryder can get worked over and Mojo can rally the crowd.
That they've been made a tag team is good for the doubles scene as a whole. For a while there there were only two teams in NXT: Enzo Amore and Big Cass's New Age Tribute Act and Blake and Murphy's Dubstep Cowboys. The Vaudevillains were excused were excused from TV duties for an extended period and every other team either got main rostered or were split. The Hype Bros give NXT a much needed fresh duo.
The obvious thing to expect is a heel turn from Mojo. I don't think that will be the initial plan though. King of NXT Triple H seems to want Mojo to work out as a face, hence why he was pulled once he started getting booed and has been retooled for his redebut. I suspect a heel turn on Ryder may be a backup plan but we won't see it unless the Hype Bros fail to work out. Which I don't think they will. NXT is the WWE show where they know how to present stories and characters for a modern audience. If they really want Mojo cheered they're going to find out how to make it happen.