Reigns as a heel wouldn't work in my opinion. A good heel should be a selfless, good worker who makes your babyface look like a badass. He would be good as a monster of the month type heel, but we dont have a babyface champ to book him against.
If you look at the great heel long term champs (Flair, HHH, Billy Graham etc.) They were always able to make the faces look amazing then sneak a victory at the last minute. Reigns is not in that calibre of worker yet and would not be able to uphold a division by making his opponents look strong. All you would have is Reigns destroying the faces and making them look like losers and losing their overness.
That said, WWE booking isnt really famous for getting people over at the moment so it cant be worse than whats already happening.
Take the mic away from Reigns, drop his friendship with Ambrose. have him just act like a badass loner who smashes people who are in his way (Brock Lesner style), and eventually the crowd will respond. He's got a reason to be angry right now losing 2 title opportunities and have him go on a rampage, with Sheamus acting like a little bitch you want to see beaten up.
