I agree, this isn't the most original wrestling story ever told (most definitely NOT an original story for Kane), but this might be a case where logical booking outweighs unpredictable/original storytelling...at least that's the way I've been looking at it.
I think one of the main reasons Kane (or "Demon Kane", lol) was decided upon for Bryan's first opponent is because WWE Creative and/or Vince want Bryan to "establish" his title reign against a "credible" opponent; by that I mean an opponent that the casual fan would recognize, but not one that needs the belt to be credible/recognizable. Think back to Big Show (c) vs. Big Boss Man. No one thought Boss Man would win the title, and he didn't (I don't think Boss Man ever won the title, but I might be wrong). He was just a recognizable name (to the casual fan) for Big Show to feud with for a little while. It didn't hurt Big Show (although the dead Father angle didn't do much for me), and this cheesy story won't hurt Bryan (or his title reign) either.
Kane makes (or made) the most sense for Bryan's first feud, especially considering that a feud with Batista is off the table (according to rumors). Kane's big, "scary", and a name that the casual fan knows. I'm sure Vince & Co still don't believe that Bryan is a big enough name to carry the marquis on his own (say versus someone like Cesaro, or Bray Wyatt who aren't as established as Kane is). Kane is also someone who won't mind getting pinned by Bryan, they have history as a tag team, and he's involved with the Authority. Makes perfect sense to me.
Batista would have been a good choice too (the reason Batista wasn't Bryan's first feud was already covered quite well by Jack-Hammer). Orton would have been good, but he had a big feud with Bryan last year. HHH probably doesn't want to work a full-time schedule, plus he's busy helping to put The Shield over (even further, as they're already over). Basically, The Shield is currently getting the DB "anti-Authority" treatment. Jericho and/or CM Punk would have been good choices, if either were on the current roster. I think it's too early in Bryan's reign to have a "face v. face" match, but I'm sure that will happen down the line too. Right now Bryan needs to work against a super heel, and Kane is a decent choice. Besides, Kane didn't get his feud with Punk at WM time.
When you look at the big picture, there are a lot of "newbies" getting groomed by veterans right now: Bryan by Kane, Shield by Evolution, Wyatt by Cena, Cesaro by Heyman. Bryan will have some better feuds before his time as champion is over, I'm sure. Bryan's upcoming feuds for the title can only get better as his reign goes on, there's really nowhere to go but up after Kane. The Authority is already focusing more on The Shield, so they'll focus less and less on Bryan in the coming months. Sidenote: I think this will ultimately lead to Stephanie versus Brie; or at the very least Brie will hit "Brie Mode" (or whatever her finisher is called) on Steph once or twice, or maybe just a mixed-tag (with Kane/Steph vs. DB/BBB) on Raw or Smackdown. It's definitely looking that way, at least.