^ Fabulous Rougeau has an excellent point - Bret was technically the last undisputed WWF champion at the time. That could have been played up through the roof and should have been.
I understand Bischoff really wanted the nWo / WCW angle to continue, but the new viewers they gained didn't want to watch the aging angle, they wanted to see how Bret handles authority and new competition. But, at the time, Nash & Hall had the tag titles, Hennig had the US Title and Hogan, of course, held the Big Gold Belt so clearly they needed to get some TV time and linking them with Bret either positively or negatively would be a good way to start Bret's WCW storylines..
This is really long, but trust me, its worth it. Down rep me if you read it and it sucks, I swear I think this is good booking on my part!
I would start the Nitro the same way they did post-Screwjob, with all the nWo guys giving Hitman credit. It helped tease his introduction and Bischoff should have concluded the promo by saying Vince is trying to screw the WCW fans by not letting Bret show up on the show. WW3 was Nov 23 1997, so they had to continue to promote Bret's arrival during the PPV - like a 2 or 3 minute segment with graphics and wrestler hype (he's the greatest, blah blah) or even the nWo having a backstage interview promoting how Bret is going to be bigger in WCW than he ever was in WWF.
Bret debuted December 15, Starrcade was December 28. First off, no way should Bret have been a guest referee in his first appearance on WCW PPV, and especially between Bischoff and Zybysko. If they wanted to continue the Bret's allegiance angle, on the Dec 15th Nitro they should've ended the show with a WCW / nWo standoff backstage and fade to black with Bret coming out of the crowd and getting into the middle of the ring, with both factions stopping and staring (nobody else in the ring except Bret, everyone else backstage). December 22 Nitro, Bret should have interrupted a promo where a WCW and an nWo guy were going face-to-face (and they were on the Starrcade 97 card, example: DDP & Hennig - replace Hennig with Hall, let Hennig fight someone else and defend his US Title) and he could have kept the mystique going by pointing to the WCW guy and saying "I want to fight you" and the nWo guy and saying "AND I want to fight you!" Short, sweet and to the point, sets up a co-main event. Interesting fact, this is how the go-home Nitro ended (includes Bret):
http://www.youtube.com/watch?v=A0CIWm592sI
In the PPV, Bret has a chance to team up with Hall to beat DDP. Near the end, Hall goes out of his way to let Bret pin DDP after he hit the Razor's Edge on DDP. Bret goes for the pin, lifts DDP's head up at 2, implying that they should mess him up more (hinting that he's nWo). Hall gets ecstatic, Bret stands up DDP, throws him into Hall (DDP conveniently rolls out of the ring), Bret does his five moves of doom on Hall, ends with the Sharpshooter, Bret wins. DDP rolls back into the ring, shakes hands with Bret, confirms Bret's a babyface, crowd goes nuts. Next Nitro he cuts a promo talking about allegiances and alliances, saying that he had an alliance with Vince McMahon and Vince screwed him. A pro-WCW guy (JJ Dillion?) gets really excited and Bret says that he isn't going to trust pro-WCW guy either. Bret is going to rely on Bret, because Bret believes in himself like the fans of *Insert City Here* believe in him. Crowd goes nuts.
Bret beats the best in nWo for a couple months (next PPV was nWo Souled Out, which would have been perfect for a Bret v. Hennig / Nash / Hall) while calling out Hogan (the current title holder). Scott Steiner's heel turn could have been with a three-man tag Steiners & Bret v. Outsiders +1, leading to a Bret & Steiner angle for a couple months with Bret being victorious. By June 98, Bret would wrestle Macho Man - the highlight of this feud being that Bret is going through nWo's best and upper echelon (hinting at a Hogan feud). The Macho feud could last three months, leading to a big payoff at Bash at the Beach 98 (which was headlined by Hogan & Rodman v. DDP & Malone). By this time, Goldberg was WCW champion, which should have definitely been that way, no matter how hot Bret was. Goldberg and Bret should have been a mutual respect but want to kick each other's ass tag team (hinting at a future feud down the line) as they take on nWo guys. Goldberg held the title until Starrcade where he dropped it to Nash and ended The Streak - I agree a nWo guy should have won / ended The Streak (maybe PPV before Starrcade), Bret would fight the champ and say that he was going to avenge Goldberg's defeat. Starrcade (biggest PPV of the year for WCW) could've been where Hart finally wins the WCW title off the transitional champ. Feel good promo next night on Nitro, where he recaps the year that was and how he went from getting screwed over by Vince to WCW champ... and since was never beat for the WWF title, he's the only true champ in the wrestling industry anywhere. Crowd would go nuts with this, especially if they followed the Hitman saga all the way up to this point (also a good barometer of how over Bret is compared to his first appearances). He could warm up the crowd and say he'll take on any nWo guy, any guy in the back, any guy who used to be champ, any guy who thinks they can fight him, any guy who thinks they're a legend, any guy who's been a WCW champ... and while the crowd is going nuts for an anticipated Hogan feud, out comes Ric Muthafuckin' Flair. Hart v. Flair goes on for a couple months for the title with Hart retaining and the two shaking hands in the ring around March 1999. Then Hart starts feuding with higher-level nWo guys again (Macho, Hall, Hennig) with the same wins. Around this time, Spring 1999, Owen dies, which shoots Bret sky high as a babyface, beating Hall then Nash (assuming Bret wants to continue wrestling). Summer 1999, Bret thanks the fans for being with him on this emotional roller coaster. Bret again teases a Hogan feud without saying Hogan's name, referring to Hogan by persona and with more intensity with each sentence and out comes... Muthafuckin' Sting. Bret drops the title to Sting, for Sting to drop it 3-4 months down the line to, you guessed it, El Dandy.. no, just kidding, Hulk Muthafuckin' Hogan.
Hogan comes out with the whole nWo gang BS, talking about how he's should always be the champ and blah blah. Gene Okerlund, who's interviewing, asks him questions, Hogan calls himself a fighting champ, he's never ducked a fight, to name one guy he's never fought. Okerlund says straight up, to Hogan's face, in the middle of all the nWo guys, "What about Bret The Hitman Hart?" nWo recoils in horror and shock at the mere mention of the name, Hogan does one of his entertaining heel promos where he denies everything and says Bret has nothing on him. Okerlund points out that he and Bret have never fought in a match, Hogan denies and stalls. Okerlund presses him, "THE FANS WANT TO SEE YOU AND BRET, 1-ON-1 IN THE RING!" Crowd goes nuts. Bret comes out onto the stage area, cuts the promo of his life about how right Okerlund is, how right the fans are. How he wants to see how he matches up against the 24-inch pythons and blah blah. Starrcade 99, right before the Year 2000, Hogan v. Bret for the title, where everyone is barred from ringside and there must be a winner. Make it an intense match, Hogan blades, Bret with the Five Moves of Doom, ref bump, Bret with the Sharpshooter, Hogan taps but no ref to check. Bret wakes up ref, Hogan comes back, have another ref bump, Hogan uses chair on Bret, does a couple leg drops, wakes up ref, 1...2... kick out. Hogan beside himself in disbelief, kicking and screaming. Bret with the comeback, working on Hogan's leg drop leg, this fact to be highlighted by the announce team. Hogan gets the upper hand, is getting over on Bret. Hogan bodyslams Bret, runs to the rope, sticks out the leg to do the legdrop... Bret catches it, turns around to intertwine the legs, rolls himself and Hogan onto their bellies, sits up and, lo and behold, its the Sharpshooter (a la his WWF Summerslam matches with Mr. Perfect). Hogan fights for as long as he can (a la Bret v. Austin at WrestleMania), and right before he passes out from the pain, he mercifully, meekly, slowly... taps. Crowd goes wild, I need a cigarette.
Bret does a heart-warming promo next night on Nitro with Okerlund, really get the fans to fall for him. Thank the fans for being behind him, supporting him, etc. Bret says he won the title back for the fans, for the announcers, for the camera crew, for Mean Gene Okerlund and for the guys in the back. But there's one guy in the back who he truly did it for, one guy who's dominant and the reason Bret started working his way to the title picture. One guy he wants to honor with a shot at the belt. That one man... is Muthafuckin' Goldberg. Set up three months of PPVs, ends with Bret putting over Goldberg and shaking hands. Goldberg headlines, Bret co-main events, having 5-star matches with Jericho, Eddie Guerrero and Benoit, while having 4-star matches with Booker T and Jeff Jarrett. These matches last one year, at which point Bret claims he intended not to renew and just become a part-time wrestler.
If WCW had followed this path, I really think WWF would be extinct. But then again, if WCW had proper bookers in the first place, us losers on the WZ Forums wouldn't have better ideas than them.