Tarec Saffadine was Woodley's last opponent, he's actually a legit, battle tested, world class kickboxer with pretty solid takedown defense who trains out of Team quest. It was a clear victory but unimpressive I agree. Jake Shleids and post UFC 69 GSP have employed the old " take him down and try to keep it there and as long as he possibly can" routine to which you refer. It's pretty effective against guys who rely on stand up to win fights, factor in sub defense and there's nothing the person on bottom can do,most of the top guys in the WW division utilize this same gameplan. That style is a nightmare for Nick Diaz, which is probably why he has been kept away from guys like that for so long.
its not that he's been matched up against guys that he can beat or provide a good match up for him. its just that there arent many legit welters in strikeforce or dream for him to fight against.
im not saying hes gonna beat woodley. but he should. tyrone woodley wouldnt even be in a top 10 discussion in the ufc welters division, while diaz right now is ranked top 5 in the world (even if its due to his win streak against lesser competition ) .