The "hype" is 100% warranted.
Provided that he isn't too depleted from a diet adjustment & weightcut to 205 (which is a big if for Daniel considering his past weight troubles in the Olympics with acute renal failure), he'd be an absolute nightmare at LHW as someone who will not simply sit on the outside and get picked apart by Jon Jones' superior reach. He closes the distance better than anyone not named GSP or Weidman in MMA (although DC's wrestling is better, their transitions from striking -> TDs are more seamless IMO) and once he has a hold of you, you're getting taken down.
With all the question marks surrounding the cut & adjustment to 205, Jon Jones would be the justifiable favourite but the Black Fedor would be a very, very real threat to his title.