First off, Davey was never in a position to take the title off Bret in the early 90s. Regardless of the fact that his name was on a list of steroid users, Vince McMahon wasn't going to put the title on anyone showing clear steroid abuse in 1992 through 1994 because of the trials he was facing. This is why smaller guys like Randy Savage, Ric Flair and Bret Hart were made champions, along with Yokozuna, who wasn't muscular. Secondly, Davey Boy Smith was released because his name was on a list of steroid users -- both he, the Warrior and several others -- were receiving shipments of steroids from England. Bulldog's firing was not the Warrior's fault, had nothing to do with being considerate or discreet. It had to do with Bulldog being an idiot.
And what would that have done for Bulldog? Nothing. It would have been pointless. "Hey, let's give the belt to a guy who can't use the microphone and can only have a good match with guys who are better than him! Then let's take it off him in a month. This doesn't help Davey, this doesn't help Shawn, it doesn't make interesting TV, but derp derp let's do it!"
Vince never promised Davey the title, he promised Bret he would "figure out more things to do with him." He created the European title and gave it to Davey to appease Bret. Bulldog really wouldn't have anything in this business if he didn't have Hart brothers defending him. He never got "screwed over by Shawn." He wasn't working as a European champion, he wasn't getting a reaction, nobody cared, so they gave the belt to Shawn to give him more heel heat and after that, it turned into a real title, that got defended and everything. He would never have gotten Bret's belt had he stayed, that's just laughable. By 1997, Davey Boy Smith was a drugged up, fucked up mess.
His in-ring talent was limited, he had no microphone ability and when was he ever over? The only reason UK crowds ever cheered for him is because he was the only guy from the UK, not because of his character itself. At One Night Only, Shawn Michaels got almost as big of a pop as Bulldog did coming out and he was the heel. You can't just state things that are blatantly contradicted by the guy's entire work history and expect it to be believed.
Wow.
http://www.youtube.com/watch?v=EO-x2NFW5dk
He gave Diesel a weak clothesline to the back, gave some awful looking slaps, and a running powerslam, then celebrated with Men On A Mission. There's no element of "shoot" in there. That all looked like an incredibly scripted and predictable wrestling angle. Anyone who found it "shocking..." smh
No, Davey was not treated especially well compared to others. Vince has had a long-standing business approach of paying for wrestler's rehabs since 1993. Anyone can be rehired multiple times (Tensai?) and Bulldog only got main events and title shots when his brother-in-law spoke up for him. By the time 1999 rolled up, Bulldog was only rehired so Vince could show he was doing something good for the Hart family after Owen died and after putting him in one main event and seeing that he was worse than ever and more fucked up than ever, he pretty much relegated him to lower-card jobber.