It failed miserably, but he tried it
Eventually he'l possibly try it but not likely this soon. I don't think that at least some people signing with WWE for mma purposes wouldn't have been leaked.
I think he sees his audience declining all the time... look at TV ratings back in the mid-1990's before MMA was on TV, and they were much higher than today. Vince may see MMA as "The Next Generation"
Ratings declining go way beyond MMA and beyond even the lack of competition. (which is changing soon to a degree).
Inevitability is the main reason. We're talking about something that produces new scripted primetime programming every single week with no repeats and that would happen with just Raw but now we're talking about Smackdown and even ECW. Daytime soap operas have more shows than that but with primetime, in America at least, WWE is a one of a kind thing. No show that creates so much scripted programming in primetime doesn't eventually decline in ratings and go off the air or do so before ratings can decline. WWE on the other hand keeps on going but naturally the same number of people having interest was never going to stay the same. This is not a knock on wrestling but when it was at it's peak it was a fad or at least in a specific phase. The buzz it had, the number of people wearing nwo, dx, etc shirts all over, and so on was happening in great numbers. That stopped even before MMA was huge. Also when something cool happens it's expected to escalate and become even better cause anything that isn't equal or better is somewhat of a disappointment and not as special. In the time period that you speak of everything seemed new and was special but eventually WWE(F at the time) was unable to constantly upstage itself. Like I said it was inevitable.
.if people needed to see some Extreme then WWE should bring back the Hardcore title to the brand as their secondary chapionship that would boost the raiting...whats gonna happen to the Title will it be renamed?
ECW!!!!!!!ECW!!!!!ECW!!!!!ECW!!!!
Supposedly Bret Hart, Goldberg, Flair, the NWO and about a dozen other things would "boost the ratings" on the main shows over the years and each time it works temporarily if at all. Meanwhile a certain portion of would complain that WWE's version of hardcore is too half assed to be worthy of the name just like they used to do say.
Seeing "extreme" would be great and maybe boost the Tuesday show and the first and even second ECW ppv in WWE were great to see but does anyone really think that Vince has any intention of doing anything on the third brand to upstage Raw or Smackdown?
I don't doubt that Vince wants the Tuesday show to be some sort of success and I personally would love to see something huge set the brand apart as from others as possible . However, if "lower tier" and a few very established wrestlers were to perform in matches that upstaged the things that the main eventers were going through and enough people took massive interest in it, it could come at the expense of Vince's main focus because what if people were more concerned with the hardcore portion of programming than the main event portion?
Again I'm not saying that it wouldn't be great but it doesn't sound realistic. Back in the day WCW was able to have the cruiserweight division and WWE had plenty of awesome midcard things going on but in those times even if something was lackluster the overall product drowned it out. These days every single thing, good and bad are more noticeable for whatever reason and therefore I don't think that Vince would want to essentially compete amongst himself by having a brand (NXT/ECW) or some sort of concept like frequent hardcore matches or mma possibly outshine Raw/Smackdown in certain ways.