It is true that WWE went into the gutter when compared with the Rockin' Wrestling Era when Bret became a top guy.
But to be fair, when Bret beat Ric Flair, Bret went from a really good mid carder to WWE champion overnight.
The guys who were dominant in the main event scene previously in that year were Hogan, Sid, Warrior, Savage, Flair, Piper, and Undertaker.
Bret did beat Piper at Wrestlemania earlier that year, and he did beat Ric Flair, but that was at a house show, and it really looked like Bret came out of no where to win the title. Bret didn't get to wrestle against guys who were seen as credible main eventers, and none of his opponents, save for Yokozuna, got to wrestle any of the big names from before. The whole main event scene looked like it was being run by guys who were only there not because they dethroned the older guys, but because the older guys just weren't around much, if at all, anymore.
Bret's ppv opponents in his first title reign were Shawn Michaels (the ic champ at the time), Razor Ramon (just arrived, wasn't a main eventer) and the new Yokozuna. They were all unproven commodities.