It's so formulaic, and indeed, very old. The entire process of the SHW squashing the CW harkens back to the days of Andre the Giant, who often received handicap matches against 2, 3, or even 4 foes because it was so unrealistic for him to wrestle just one man.
And it's been consistent through history. Big Van Vader was fed ham 'n eggars in WCW as well as Japan. When one of the jobbers tried to go after Vader and put himself over with hard punches and the like, Vader hit him with a backbreaker, and when the jobber tried to make the backbreaker look wrong by fighting it, it nearly resulted in the jobbers back getting broken.
Yokozuna's first PPV match was against Virgil. We can stop there.
Even Ludvig Borga, whom I often compare Kozlov to, wrestled his first PPV match with former Intercontinenal Champ Marty Jannetty, and it was a squash.
Personally, I feel there are plenty of other underused SHW techniques to make them look dominant without week-in, week-out CW squashes.
1. Staying on one's feet. When Yokozuna first started off, we were reminded that he had not been knocked off his feet in a singles match (Savage knocked him down in the Royal Rumble, only to hit the elbow drop, try to PIN Yoko, and get bench pressed so hard he flew over the top rope and to the floor). So instead of wrestling matches, Yoko started coming out and challenging men to knock him off his feet. For WEEKS they failed, until Hacksaw Jim Duggan came out on Superstars and pulled it off. The crowd went ballistic with the USA Chants. As Duggan celebrated, Yoko got up and attacked Duggan, eventually hitting 4 Banzai drops - the last of which was with the flag draped over Duggan's body, with the blood from his (kayfabe) cracked ribs staining the white stripes. Epic moment, and BOY was Yoko over as a top heel after that.
2. The All-Mighty Bodyslam. I won't even bog you down with the Yokozuna / Lex Luger story, you've heard it. But recall the Andre the Giant / Big John Studd feud. They had a $10,000 Bodyslam Challenge, with the heel Studd making claims for MONTHS that he could slam Andre, and that Studd himself was the true "Giant" in WWF. Well, suffice to say, Andre won that special match after slamming Studd.
3. The Lift-Off. One thing that put Mark Henry over to me - as well as Crush in the weeks leading up to the Intrepid Bodyslam Challenge - was seeing these athletes perform legitimate feats of strength. That's even more important now that pro wrestling isn't hidden under the whole "the matches are real" premise. Watching Mark Henry deadlift a car off the ground gave him a whole new aura. Watching Ludvig Borga, a Finnish Powerlifting Champion, deadlift over 700 lbs, made me fear him. What's wrong with this technique? Let the SHW's impress fans with weightlifting / powerlifting / posedowns. It's a hell of a lot better than a diva-dance off, as you will (sadly) see on Smackdown this week.