I mean different strokes for different folks. I just don't see the long term issues.
Like I said earlier, Tessa could lose this belt and then go after the KOs Title and it would not be any problem. It would be a step down so to speak, but wrestlers take step downs all the time. Like I said, how many former World Champions have gone on to win the Intercontinental, US, X Division, TV, etc. titles? Does that really change how we view them? I mean Jericho with the IC Title is awesome. Cena with the US Title is awesome. If anything it just elevates those titles. It doesn't make us look at those wrestlers as damaged goods or something.
And I think her losing to Knockouts is also a complete non-issue. Athletes can fluctuate in their performance. And to say "this person beat this person, so that means that person can beat every person that person has ever beat" is complete nonsense in the scope of wrestling. The Hurricane beat The Rock. Did we automatically assume Hurricane could now beat Stone Cold, Triple H and Hulk Hogan? Rosey beat Hurricane a couple months later, so is he now on the same level as The Rock? The answer is simply no.