No, it should be:
1) Ferguson (rightful champion)
2) Khabib (impressive record, no losses, but inactive)
3) McGregor (still the "champ" but inactive)
4) Lee (great skills, very active, lately only losing to the #1 LW interim champ)
5) Gaethje (impressive debut, we'll see how good he really is)
6) Alvarez (former champ, but not very impressive in his last wins/losses)
7) Barboza (good win streak going, more active than Diaz)
8) Diaz (not active at LW since 2015, last two fights were at 170lbs)
Fighting frequently needs to happen. Diaz deserves his 6-10 ranking, since he won't fight. If Conor won't fight Ferguson, he should move to #5 while everyone else moves up a spot.