I absolutely felt that the AWA could have been a force to be reckoned with into the 1980s had Verne Gagne changed his modus operandi. The fact is this, a good number of performers that the WWF acquired during the 80s expansion came from Minnesota. Jokingly but accurately, on one of the WWE retrospective DVDs, not sure if it was the McMahon DVD or the Spectacular Legacy Of The AWA, I'm thinking it was the latter. I digress but that said I remember someone being interviewed mentioning how by the time WrestleMania rolled around, WWF had more AWA stars than the AWA presently had. Jack-Hammer's points are incredibly spot on, and OP I definitely see a lot of where you're coming from.
Here's my take on it, the AWA indeed tried to keep their traditional wrestling values in place, while at the same time also trying to pander a bit more to the sports entertainment aspect of things. You could see that there was definitely an attempt to try though with how big they pushed Hogan. Granted Hogan never got the title except in a couple of those teaser finishes. And if you believe what you heard in the AWA retrospective, Verne Gagne was finally going to give Hogan the strap on the condition he got some of Hogan's Japan earnings. I don't know if that was just to add entertainment value to the AWA story or if it really happened. I'm not sure. Either way, I think the AWA missed the boat on keeping Hogan in the promotion and making him their champion. Considering all the other great talent they had in the company, many of which had gone to the WWF, they missed out on a lot. If Verne and his son Greg had the same mindset to adapt to change that Vincent K. McMahon had, they could very well have bucked the trend of what pro wrestling currently was. It would have meant ruffling some feathers and signing some of the Jim Crockett Promotions prominent players as well as wooing back some of the talent who jumped back and forth between Minnesota and New York, but it just seems to be that it just wasn't in the Gagne's nature to do that.Had they shared the same mentality as Vince, I wholeheartedly believe they could have accomplished what the WWF did because they did have the talent and the interest from mainstream media. After all, Hogan's presence piggybacking off the Rocky III movie was HUGE at the time. If what Greg Gagne said was true, there was even talk of CBS offering a prime time special to the AWA, Hogan's departure and subsequent return to the WWF prevented that from happening.
Had things stayed the course, and the Gagne's acquiesced to Hogan, as well as continuing to pile on the talent that it had, as well as make some controversial but necessary moves in the way of expansion, history could have ended up very differently. However, so much of this is hindsight, and as they say hindsight is 20/20. But with all of that said, despite the AWA's eventual dissolution in the earlier part of the 1990s. There were several talents that saw their careers benefit greatly by performing their in the 1980s, names like Shawn Michaels, Marty Jannetty, Scott Hall, Curt Hennig, Yokozuna, and even Jerry Sags and Brian Knobbs were all beneficiaries of having a stint in the AWA.
It's unfortunate that the AWA couldn't stick around as a viable competitor to the World Wrestling Federation and JCP/World Championship Wrestling, but they were a victim of their own code of honor in the business of promoting professional wrestling.