Don't you all remember? Not long ago, Mr.McMahon said that he was going to kill what he created...his product RAW. Well, that is what he is doing. RAW is dying and Bischoff is in charge of it. Exactly what Mr. McMahon wanted.
This also is a snub in the face to all the "smart" fans. See, Steph is running Smackdown and not long ago everyone was pissing and moaning how Smackdown was gonna suck or how they were not going to watch it because of Steph. Now what we have is just the opposite. See, Steph sits back and brushes her hair back saying "See daddy, they all love me. I am the queen of the world. It's all about me, me, me. They can't get enough of Smackdown. And once they all stop watching RAW, because they love me and my writing, my one and only Paul will cross over to be at my side. Contracts won't be frozen then. See daddy?"
1) You're assuming the WWF is operating under some semblance of continuity. No.
2) If Vince puts on horrible television just to screw with the IWC, then he has real problems. We all know what happened the last time a Vince based his promotion around the Internet. (Hint: IT WENT OUT OF BUSINESS)
Yes, it is absurd they just imploded the Foley/Punk idea to put Cena in Another Title Match In The Main Event. Shades of when the Bragging Rights team for SD! was completely replaced a few years back...though not *that* bad.