Even though Russo and Bischoff had the final say on it, you have to blame Tony Schiavone a little too, because he's the one who came up with the idea in the first place.
To be honest, I can almost see the lure in putting the world title on a celebrity to garner publicity (not that I necessarily agree with it, but it's not like it isn't something the WWF hasn't come close to doing themselves) but like Scott Steiner said once in a shoot interview, "It's not like they were putting it on Arnold Schwarzenegger." I wonder if it would have been a little more well-received if it was on someone who was more of an A-lister (and what a terrible movie Ready To Rumble was IMO.)