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Because his gimmick can't handle the position. His ring work isn't as good as people say it is and his promos are great for an antagonist with a sour grapes rationale for why he isn't in the main events but can still win mid-card championships. Miz is great as the guy you want to see get beat up...and you do! Yay! As a dominating heel champion? Ugh. A chickenshit championship run would just be like a less credible JBL run again. How did that do for ratings? How did The Miz's last run do for ratings? He's a lot...well, he's got a lot of the gimmicky things down, but he's not that much better. He still looks the same, he's still as goofy in the ring, and he's still occasionally good on the mic. But we've been there and we've done that.
Not everybody is an ideal World Heavyweight Champion. That is fine. Some guys are immensely valuable in the mid-card. Miz is perfect for working with these indy guys they bring in without a personality developed. If you want to get Hideo Itami over, bring him in and have him kick Miz in the head. Instant pops for Itami. If you want to get Roderick Strong over? Have him come in and have Miz tear him down for not being in his Superstar league and then have Strong give him backbreaker after backbreaker after backbreaker. That is Miz's wheelhouse. The goal should not be to try and make him the star.
Also, part of Miz's charm is that pretends he is a big celebrity because of his relative WWE success and movie career. If he actually won an Academy Award and was actually presented as the most legit guy on the roster, then where is the heat coming from? He's no longer some delusional douchebag -- he is right. Putting the WWE Title on Miz would be like peeling back the curtain in WCW and revealing that there really was a conspiracy to screw Chris Jericho. Don't ruin a good thing.
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