1. Yes that was the original plan and some promotional stuff was filmed. However, with the steroid trial going on and Hogan more or less becoming obsolete, Vince threw him out at KOTR and went with Yoko as champion, thinking that he would make Luger the new Hogan, which didn't work for one reason or another.
2. Originally yes, that was the plan for Mania 13, but the real reason why it never happened it very complicated. The story that I've heard Bret tell, which should be taken with a barrel of salt is that he was going to put Shawn in the sharpshooter at Mania with a sound effect set up under the ring to simulate Shawn's leg being broken, leading to Shawn being gone over the summer and returning at Summerslam for Bret vs. Shawn 3 where Bret would put Shawn over.
However, and we're now out of what Bret said, Shawn made a comment where he said something about Bret having "Sunny Days", which was a line more or less outing the fact that Bret was sleeping with Sunny. They had a legit fight at a show in California and Shawn "lost his smile" and forfeited the belt, saying his knee was destroyed. He was of course back a few weeks after Mania like nothing ever happened and Bret fought Austin at Mania instead with Taker and SId being for the title instead of just being a regular match. Had Bret not been heading to WCW, he would have dropped the belt to Austin at Mania 14 in the rematch, but Montreal happened.
Granted though, all of that should be taken with HUGE grains of salt given the sources.
