TS, if it went down that way, we would have gotten what we all expected. One of the best fights ever. If Carlos came out in his typical aggressive fashion, it would have been epic. He fought the smart fight and won.
People keep bashing Diaz because of his style, saying he is slow, bad footwork, needs to cut off the octagon, etc. These are very fair criticisms, but his style is also why his fans love him. He isn't looking to win a match, he is looking for a fight. He wants to bang, toe to toe. That's what is great about him. Good for Condit, I really like him as a fighter too, he's exciting as hell, but he fought the safe and boring (for fans) fight.
And to answer the question, no, I think Diaz wins a brawl. Condit is certainly more then capable of a KO in that scenario, but I believe Diaz would get the better of exchanges and wear him down with volume punching and toughness.