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No it was the right call.
Two world champs has never worked. There's only one main event. The world champ who never main events is not a true world champ.
If Raw was two hours, this wouldn't have been an issue: between the IC and US titles, both women's and the men and women tags (plus gimmicks like MITB and KOTR) they had enough midcard prizes to fill the TV while Roman got to feel like WWE's final boss in the way Undertaker's streak used to feel like it.
Seth's WHC does nothing but undercut Gunther as IC champ. Between Sami, KO, Seth and Cody, there's enough babyfaces to fight Imperium as the top story of Raw.