It's insulting the fan's intelligence whenever they "break kayfabe." You're supposed to stay invested in a story that acknowledges what happened moments/months ago as fake?
When literary and TV characters started "breaking the fourth wall" (acknowledging that they were actors/characters in a work of fiction) it was a bold innovation, opening new avenues of storytelling and creativity. That was about a hundred years ago in literature, and about ten years ago in pro wrestling. The device is played out and done to death.
Now, if Russo is going to assume the onscreen authority role, going from "backstage matchmaker" to "commissioner," that's fine. He's a very good heel character, he has good reasons to dislike Hogan and Bischoff, and has a resume that makes him a plausible President of TNA.
Wrestling stories can bring real elements into them, but the cardinal rule has to be that the matches are real competitions. When Scott Hall no-shows a PPV, Samoa Joe can justifiably call out Hall as a useless druggie has-been trying to cash in on the blood sweat and tears of the young TNA talent, and can dare TNA management to fire him for his comments. In real sports, people are disciplined all the time for "comments detrimental to the sport." Wizards/Capitals owner Ted Leonsis was just fined $100,000 by the NBA for commenting on the next labor agreement. Michael Cole can talk about his contempt for what Brian Danielson accomplished "in the minor leagues." A baseball star out of Japan faces skepticism of whether he can cut it in the big leagues. Sometimes real talents (Samoa Joe, Kevin Kolb) get overlooked because management has a more marketable guy. (Ken Anderson, Michael Vick) Those things happen in real sports, so why not in a simulated sport? The cardinal rule--what can't happen in a non-scripted sport can't happen in wrestling. (This means that the Undertaker has to retire, but this is a TNA thread)
If this becomes all about "worked shoots" and using insider language and trying to build interest in today's feud by admitting that what happened yesterday was scripted and fake, that's a formula for chaos and catastrophe, like WCW's death spiral of worked shoots, vacated titles and collapsing ratings and buyrates after Bash at the Beach 2000.