The only negative to Elite XC's demise is the fact that it is one less bargining chip for free agent fighters. I think this loss gives the UFC even more leverage when it comes to making deals on their terms. I think that there is room for additional MMA promotions above a regional scale. But i think the business model that the Elite XC's, Bodogs, and Afflictions of the world are being run by are what is ruining their existance.
Everyone wants to get rich quick riding the UFC's coat-tails. So they spend up a bunch of cash to sign fighters thinking and get in too deep, too fast.
I think this is a major win for Strikeforce, who runs a very respectible promotion. If the UFC does not capitolize on the now major void in woman's MMA by signing Carano, Cyborg, etc; Strikeforce may have a gem on their hands. I just hope they stay the course, and don't get over their heads.
They've got a prospective TV deal on the table. They have recognizable fighters at the top of just about every weight division. And now they have the oppertunity to cash in on the one part of MMA that the UFC has yet to claim: female fighters.
I've got a feeling though that Carano/Cyborg will wind up on an Affliction show before they go out of business. Either that, or the UFC will see the draw that Gina is, and find a way to make it work.
Time will tell I guess.