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Can the deathwing champion be outfitted with the cyclone rocket launcher? It give me the option to take it, but does it wpicificly say it needs to go on one of the deathwing terminators not the champion?

No, he may not:

Upgrading to a Champion changes the model's name (from "Deathwing Terminator" to "Deathwing Champion"), only a "Deathwing Terminator" (i.e. model named X) can take from the Terminator Heavy Weapons list, and upgrading to a Champion replaces all of the model's weapons, so regardless of the order they occur in, it is not allowed.

This is similar (but sufficiently different) to standard command squad apothecaries taking special weapons, which gets a mention in the new FAQ's GW are working on.

Awesome, follow up, tactics question on average which do you think would be better to be firing on shooting phase?

SB or cyclone missile launcher?

Note I do have a level 2 lib there so powers do come into effect

Confused by the question, the answer is definitely: Both

A CML terminator can fire both it, and it's stormbolter, in the same turn (check out the rule on page 149 of the DA Codex).

Generally, when I'm taking a CML on my terminators, it's to use Split Fire to shoot the CML at a different (normally armoured or distant) target, so the SB doesn't always get used. Why would you pay for the expensive upgrade if you weren't going to use it?