There are currently 16 second-generation wrestlers in WWE. Let's analyze each one:
1. Randy Orton- 9-time world champion and one of the most successful stars in the company. He was booked the correct way. He used being a second-generation wrestler to get over at the beginning and then created his own character to get over himself. I might not be his biggest fan, and you aren't either, but you have to be objective and see that Orton is a success story. Aside from the Rock, he is arguably the most successful 2nd-generation wrestler of all time.
2. Cody Rhodes- He has had a bunch of different gimmicks and they have ALL worked in my opinion. Dashing Cody Rhodes was hilarious, and Disfigured Cody Rhodes was incredible. Ever since he lost the mask, he has been a little directionless, but he's made up for it with some good feud with Big Show and Orton. While tagging with Sandow, he inherited that "Intellectually superior" gimmick for a while, which made The Rhodes Scholars interesting, but I'm glad he's back in singles competition.
3. Ted DiBiase- This guy has ALWAYS been bland on the mic. I was one of the few who thought Cody was always better than Ted, so I just never understand why people were so high on him during Legacy. He's bland, that's why he didn't work. It has nothing to do with WWE focusing on his heritage.
4. Alberto Del Rio- First of all, Dos Caras never wrestled for WWE and even so, Alberto has hardly ever incorporated his dad into his gimmick at all. Del Rio had a Mexican Aristocrat gimmick. That's as FAR from Dos Caras as he will ever be able to go.
5. Michael McGillicutty- Although he has mentioned it in a few promos, it's safe to say he has never incorporated his dad into his overall presentation as a character. Michael has a fake name just to avoid the comparison. He's underused, but I think this is a case where he can actually BENEFIT from being billed as a second-generation star.
6&7. Jimmy Uso and Jey Uso- The Usos are great. I really like that they play up their heritage. It gives them some babyface fire. Plus, that entrance is sweet. There's no complaints from me here except that WWE has severely underestimated their potential to be a top tag team.
8. Primo Colon- He's been teaming up with his cousin ever since Carlito left. There's not much to say here, except that he really isn't as interesting as his brother. He can definitely go in the ring, but I think he's better suited to the role he's playing right now.
9. Roman Reigns- He's the perfect example of a guy getting over without ever having to mention his dad. Roman is a beast and he doesn't need to be shown as Sika's son to get over.
10. Bo Dallas- I think Bo Dallas is one of the blandest and most boring wrestlers/characters/people I have ever seen in my life. Something about him just screams "Flip the channel". It has nothing to do with his gimmick. I can't see him doing ANYTHING that would make me even remotely interested.
11. Memo Montenegro- Del Rio's brother is showing some potential in developmental, but hardly enough to be worthy for the main roster. He's still got a long way to go, and until I see exactly what his strengths as a character are, I won't have an opinion on whether or not he should use 2nd-generation as part of his gimmick.
12. Richie Steamboat- I think he's severely overhyped, but he gets the job done. I can see him moving to the main roster, but I actually think it's best if they don't play up the connection to his father. He's never going to impress the way his father impressed people in the ring. Not yet anyway.
13. Bray Wyatt- Husky Harris was a fine gimmick, but Bray Wyatt blows it out of the water. Bray is probably the best gimmick right now and he should be moved to the main roster ASAP. Forget mentioning his parents, Bray is a once-in-a-lifetime type of character and WWE should capitalize on it.
14. Tamina- Tamina is fairly good in the ring, and I thought she really had potential as The Usos' valet. Too bad they split up, because she has been struggling to get over. Hopefully they find something for her soon.
15. Natalya- Natalya is fantastic, and although being connected to Jim won't really help her, I think playing up her connection to The Hart Foundation is a good idea. They need to focus on the fact that she's a great WRESTLER, and what better way to do it than putting over her as the nice of the Excellence of Execution.
16. Ashley Flair- Ashley has been fairly impressive and can definitely get over with her father as a manager. I don't see any negatives in presenting her as second-generation. In fact, I think Ric could not only help put over his daughter, but put over the diva's division as a whole.
So in conclusion, there are plenty of scenarios where "2nd-generation" is a good way to introduce a character, but they eventually have to stand out by themselves. Guys like Ted and Michael have yet to stand out on their own and that's why they failed, but guys like Cody and Randy have been able to use their 2nd-generation status and build on it with interesting gimmicks and character traits.