I'm rather impressed that SF would be able to do this tourney and their roster does seem rather strong at the HW level. 8 legit guys. Sure you could replace any of them with certain UFC fighters saying 'they'd clean up in this tourney' but I can honestly say that I don't think the UFC would put together a tournament with over all this strong of competition. I like that SF is taking that kind of chance.
Reem
Fedor
Werdum
Rogers
Silva
Barnett (hopefully)
Arlovski
Kharitonov
or say:
Cain
JDS
Lesnar
Mir
Carwin
Cro Cop
Big Country
Big Nog
UFC has a larger group to choose from but except for a washed up Arlovski SF is pretty close in quality.
Why is Arlovski washed up?
He's on a downslide but he climbed back from one before on was on a big hotstreak when he fought Fedor.
The beauty of this tourney is that just about every guy winning would make a great, great story.
Fedor: The best ever shows that everyone can have a bad night and instantly reclaims the number 1 spot.
Werdum: A veteran combos the biggest win in the sports history into a parlay of epic proportions by winning the best HW tournament in recent memory to cement his spot as #1.
Overeem: The K-1 GP champ shows that all the hype was for real as he makes a super fast jump from fringe 10 to #1 and silences critic who call his MMA belts paper.
Arlovski/Rogers/Sergei: From "old news" to back in the limelight, great comeback stories from guys on bad downslides.
Barnett: A veteran with limitless experience comes back from exile to instantly jump to the top of the rankings and rehab his media image.
You get the point.
Put them together 
OMG Cain vs Reem would be a friggin war!!! I never really thought about it lol.
The only fighters that excite me on the UFC list is Cain, JDS, and Carwin. Lesnar has turned me off at the moment.
On the SF list I like Reem, Fedor, Werdum, Silva, and Barnett. All 5 of these fighters could win a UFC title bout.
You have to seriously wonder whats happening with the UFC's HW division when Struve vs. McCorkle at UFC 124 is the only HW fight to appear on a ppv main event from Lesnar vs Velasquez at UFC 121 up until UFC 128 when Schaub takes on Cro Cop. Now that the Mir/Carwin/Lesnar/Velasquez/JDS saga is almost played out, I don't see any fresh relevant title fight happening, only re-matches.
I think the UFC has the top 2 HW in Velasquez & JDS but Strikeforces HW division seems a whole lot more exciting to me at this point.