Good observation. The way I see it, WWECW was doomed from the start, just because Vinnie Mac wanted to have so much involvement in the creative process.
As stated before, Vince McMahon is in the sports entertainment business. It's little surprise at all that his influence is stamped all over WWECW, as the matches are filled with the low-risk, low-impact style that typifies the WWE product. I'll admit that I was optimistic after watching the ECW One Night Stand PPVs (esp. the first one), and pleased when I heard about the involvement of Sandman, Sabu, Justin Credible, Amish Roadkill, etc. However, I did expect the worst once I heard about control freak Vinnie Mac's involvement in the creative process at ECW, and the fact that the first episode of WWECW was a complete disaster did not surprise me in the least. It has improved since then, but that's not saying much - it's still rather awful.
The equation is simple: Vincent K. McMahon = Sports Entertainment. That said, ECW is just another brand of WWE, and it's best to think of it as that rather than a continuation of the original ECW. Even looking at it that way, it sucks. Plain and simple, it's just third-tier sports entertainment.