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Exactly, wrestling has been stagnating for years. People have lost interest and basically any big sporting event is going to draw a bigger crowd, especially when you consider most casual WWE fans are also fans of basketball, football, etc.
Honestly I think it's just that all these "anti-IWC" people want something to blame so they choose to look for any correlation between IWC darlings and bad ratings. Thing is correlation =/= causation. Like you said the sky's been falling for a while and people are only acknowledging what they want to acknowledge so as not to hurt their own world views.
Fact is bad booking and writing is what's killing wrestling, not the IWC, and not the prototypical guys either. WWE has just failed miserably at building new stars so when they can't book the Rock or Lesnar they can't get people to tune in.
With so much great television out there now there's really no excuse for shows to suck. WWE can coast a little on name value but honestly if WWE didn't have such a vast background there's no way it would succeed at all in today's atmosphere.
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