The answer lies somewhere inbetween the WWE's wishes and Hogan's wishes.
Bring him in and build him up to be a star, and when the time is right, and the person is right, have him put someone over into infinity. With Randy Orton a full-fledged heel again, this would be the perfect opportunity for him to "kill" Hulk Hogan - but not until Hogan is brought in and built up to be a major threat (a feud with Triple H would help).
Hogan's idea that people don't want to see Hogan lose is true - they love the nostalgia that comes naturally when you watch Hogan "hulk up" and drop the leg for the win. But by the same token, Hogan can do so much for the business by showing that a new generation of superstars is arising. It won't hurt his legend because he's well past his prime.
A fact that works for both parties: Hulk Hogan's massive job for Brock Lesnar instantly shot Lesnar to main event status.
That job worked perfectly, with Brock looking like a true threat to anyone in the business by defeating the immortal one.
At the same time, Lesnar spit on that contribution when he left the WWE without so much as a warning. Hogan's job was useless in the long run, so I can see why he doesn't want to do it again so soon.
Either way, Hogan is an old horse that should be put out to pasture. After WrestleMania 21 he'll be a hall of famer in the WWE, and that should be that. Let the new guys make themselves into stars without the help of the old.
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