This is a very tough call for me. Benoit was probably my favorite wrestler in the world when he died and had been for a while. I remember being overjoyed when he won the WCW World title (for a night) and thinking WCW was insane for not finding a way to keep him around. I was disappointed when he left, but I understood that they weren't ever going to give him his due (this was hard for a WCW fan to accept, considering the thing I loved about the company was their historic pushing of in-ring ability over flash...but....Hogan). My answers to the question:
1) Yes - Chris Benoit was a tremendous talent, a multi-time champion who got himself over despite a lack of some of the obvious traits that WWF/E has always valued in a main event level star. He was a tremendous technical wrestler who understood ring psychology and could put on great matches with anybody. As for the main argument against his induction, the professional (American) football, baseball, and basketball Halls of Fame all have....shall we say, less than stellar human beings that have been inducted based purely on their success and talent in the sport, including people who have (allegedly) committed murder.
2) No - The fact that Benoit (for whatever reason) apparently took the lives of his wife and son will forever mar his reputation so much that he cannot be put into the WWE Hall of Fame.
It comes down to the prevailing viewpoint of how detrimental that one action was to Benoit's image and how much that action would hurt the image of WWE. At this point, I have to go with no. I think the damage done to WWE's image by being associated with the last actions of Chris Benoit have to keep him out of the Hall of Fame. In another ten years, that might be different, but that's how I see it at this time.
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