I think he should win the Rumble and go on to challenge the WWE Champion, Edge, at WM26 in a Title vs Career match. Everyone will expect him to lose and retire, but I say have him win. Then the next night on Raw have him say that it's been a good run, but HBK is going to call it a career while he's on top and have him retire as champ.
Not only does that send off HBK on top, as a reward of sorts for being one of the only top stars to stay with WWE through his entire career, but it also sets up the next WWE Title storyline. An epic tournament to determine the next champ. I'm not talking about some 2 or 3 week crappy tournament that ends with Backlash, I'm talking 32 guys from all 3 brands competing over a couple months with all sorts of intertwining storylines going on (people screwing other, friends turning on each other, Ted DiBiase using his father's money to "buy" his way into the final 4).
This was the best idea of the bunch for a few reasons:
1) Shawn Michaels is one of the Top 2-3 Royal Rumble performers ever. Royal Rumble 1995 is one of my personal favorite matches, with HBK-Bulldog going wire to wire. 1996 was about redemption and the culmination of the WWE's best written story ever. Winning the Royal Rumble one last time puts HBK alongside Stone Cold as the only men to win 3 Rumbles and solidifies him as the greatest Post-Hogan superstar ever.
2) Winning the title at Wrestlemania 26 allows Michaels to put the stamp on his self-imposed "Mr. Wrestlemania" title. Regardless of who the opponent is (Edge would be a great choice, as they lack history similar to HBK-HHH, HBK-Cena, etc.), winning the title and retiring on top is how the Shawn Michaels story should end.
3) A Huge tournament to determine a new champion would be epic. 32 men seems to be the perfect number too, because then you get to see some guys who normally aren't in the title picture getting a shot at glory. Have the rounds of 32 and 16 happen over a 2 week period on Raw & Smackdown, leaving 8 men and 7 matches for Backlash. One of the things WWE used to do right was having complete tournaments occur on PPV (1993/1994/1995 King of the Ring, 1998 Survivor Series Deadly Games, etc.). Thus, Backlash 2010 would be the 8 man tourney to crown the new Champion. This would re-establish the Belt as something worth fighting for, as someone will have to win 3 matches in one night to be crowned Champion.
Great idea Bowzer....you're the 1st poster on this site filled with marks, babies, and whiners to have an opinion I agree with!!!