We still get them. Dolph Ziggler regularly wrestles on Raw. :haha:
Anyway, that was the norm in Hogan's day and some (Lance Storm wrote a good article on this) say it was actually a better vehicle for getting everybody on the roster over. Because the mid-carder would give a promo getting himself over, and then go out and squash a no-name who usually got no offense in and the actual guy they wanted to make a star out of got to showcase all his moves and mannerisms and get everything about his gimmick and himself over. Always picking up wins made him look quite dominant, too. Made actual star vs star matches seem more special.
But you could never bring it back in this day and age. People are too used to star-studded matches. The closet you can get is to use them to get demolished for a debuting wrestler, like Brock Lesnar destroying people (often refusing to pin them and the referee would have to stop the match out of concern for their safety) or Chris Masters man-handling them with the Masterlock (awesome finisher) or Ryback shell-shocking them, often two or three guys at a time.