He has lost two in a row and him fighting Franklin makes much more sense than scrapping that fight and putting diet Nog up for beating against Rashad. Tito fight is easy to sell due to his underdog win against Bader and that is why it makes perfect sense from marketing point but I just can't see him off another upset against Rashad.
Rashad is at least top 5 LHW right now, and even though Tito caught a lot of momentum with that Bader win, he is still one old potato head. Rashad is going to play tag with him standing and hump Tito on the ground all day long en route to a boring decision, which I most definitely don't hope to see, Tito pulling off another Bader surprise would be just awesome but can't see it happening... Still, I think Tito makes perfect sense for this fight as DW decided not to pay Machida, if you look at other top 10 options from UFC's LHW:
Shogun is going to meet Forrest in RIO card, and I doubt they'd like to scrap this fight even though Forrest might just step up for it if asked. Page is going to fight for title, and Lyoto wanted too much money. Davis is injured and Diet-Nog is going to fight on the same card and is no where near the position to be fighting for the title shot having dropped two in a row.
Franklin is comeing off a loss and fighting on the card, same thing with Hamill, so the next in line would be Tito coming fresh off a nice underdog W, so why not. I mean really, only real option would've been Machida, and he isn't doing it, so Tito is basically the next name down the list if not scrapping fights is a priority. They could've called up Chael if they wanted though, the tough motherfucker he is sure he could've jumped in to kill Rashad before starting the preparation for Stann .
Also, I second everyone about Nog getting outworked on the feet against Franklin so I'm expecting this going Rich's way, lots of good wagering to be done on this one.