This match isn't a HIAC or a cage match so I don't even understand what people having success in those types of matches has to do with anything
It shows that one can take punishment and can handle excessive blood loss. Look at the beating HBK received in the first HIAC. He was a bloody mess. Undertaker beat him to a pulp! Undertaker rammed him repeatedly head first into the steel structure and even kicked him down from on top of the cell into the Spanish announce table. It was one of the most brutal matches of 1997. Yet despite all that Shawn Michaels still got the win. Shawn is as tough as they come. He'd be able to handle the extreme rules, he'd be able to handle all the weapons, he'd be able to handle the blood loss, and most importantly he'd be able to handle Jerry Lynn.
Shawn is considered by many to be the best wrestler to ever lace up a pair of boots. When you think of the greatest Wrestlemania matches of all time, you imediately think of Shawn's 60 minute iron man match against Bret Hart, a match in which he went move for move, hold for hold, with one of the best technical wrestlers in the history of the business and came away with the win and you think of Shawn's recent instant classic against the Undertaker at Wrestlemania 25. Shawn is a guy who's never looked bad against anyone he's faced and he's faced the absolute best in the business (something that can't be said for Jerry Lynn).
Shawn Michaels has defeated the absolute best in the business. HBK has defeated HHH, The Undertaker, Kevin Nash, Chris Jericho, Randy Orton, Mick Foley, and others. Who has Jerry Lynn ever defeated??? I'll give you RVD; which is impressive, but he lost against RVD more times than he won and I'll take wins over Taker, Nash, Y2J, Orton, HHH and Foley over a win against RVD anyday.
The Bottom line is that Shawn has faced and defeated the best of the best on the biggest stages of them all. Jerry Lynn hasn't. Jerry's a great wrestler and has contributed a lot to this business, but he's no Shawn Michaels. If you were to write a book on the history of pro wrestling, you could write that book without ever even mentioning Jerry Lynn, the same thing can't be said about Shawn Michaels. Shawn definitely gets the win here.