I admit I had to do some research but going from a cage match with Hogan for the title to a little person match against Hillbilly Jim may not be a bigger drop off than Sarge but it is one of the bigger drops.
That being said, I though that match was great when I was a kid.
Easily my vote, as well.
If you could put yourselves in the mindset of 1986 (good luck to the young people,) following up the single, greatest televised wrestling event of that era (Wrestlemania 1) was a tough act. WWE needed a perfect foil to Hogan's dominance and popularity and that time period called for the largest wrestlers in the world to be the only formidable challengers to Hogan's title. Vince was obsessed with BIG men at that time, regardless of how awful they were in the ring. If I recall correctly, the only big man on the roster that hadn't challenged Hogan yet (and whose character wouldn't suffer) was King Kong Bundy.
Truth be told, it was a great choice. For the build, Hogan was trampled by Bundy during a match against Don Muraco and (kayfabe) had some of his ribs shattered from numerous Bundy-avalanches. Bundy then challenged Hogan for his title and a steelcage match was set for WM2. The match was pretty much sub par (but exciting for that time period) and helped make the event successful.
Fast forward to one year later and (arguably) the most important and remembered Wrestlemania of all time and Bundy went from main eventing a 'Mania to participating in a mixed tag match between the team of Hillbilly Jim, Haiti Kid (dwarf wrestler) and Little Beaver (dwarf wrestler) who faced the team of Bundy, Little Tokyo (dwarf wrestler), and Lord Littlebrook (dwarf wrestler) which ended in a DQ as a result of Bundy attacking one of the dwarf wrestlers when rules stated he was only supposed to wrestle Hillbilly Jim while the dwarves could only wrestle each other. These strange rules and horrific ending made for both a disappointing, yet hilarious ending.
It's crazy to believe that Bundy headlined Wrestlemania just a year prior against the first worldwide, wrestling superstar in Hulk Hogan. I just can't see any drop-off being that severe for anyone else in history.