The Jarrett/Carter TNA has been great for Vince. It has prevented the emergence of a serious competitor by sucking up enough talent, TV exposure etc. that no one else has taken a shot at it. Meanwhile, under Dixie Carter and Jeff Jarrett, they weren't going to threaten WWE.
Do you feel WWE needs that level of competition in order to reach the heights it once had?
"That level of competition" is the key. It forced Vince McMahon to change--but it also nearly killed the company. It DID kill the other company.
Up until last week, WWE's competition was not TNA or even really UFC but the Disney Channel, Nickelodeon, Monk, Xbox, Batman, NBA, NFL--anything people spend entertainment dollars on or watch regularly enough to make advertising worthwhile.
So focus was on how to repackage or tweak the product to chase the Hannah Montana fans' brothers. Thus the rise of John Cena and Jeff Hardy.
Now Vince may be worried about a wrestling competitor threatening his "home turf". Many people think that this will spur him to improve his product and thus be a Good Thing. However, Vince's history indicates that he is much better at ruining and destroying his competition than he is at making WWF/E awesome.
6-Step Plan to Cripple TNA/Hulkamania
Step 1. Create an official Veteran's Schedule for over-35 main eventers, cut to 100 shows a year.
Step 2. Main eventers who Cross the Line to TNA will not be welcomed back.
Step 3. Sign key TNA talent at almost any cost--Angle, SAmoa Joe, Awesome Kong.
Step 4. Inflate TNA's payroll. A TNA talent is a free agent, offer a WWE roster contract.
Step 5. Counterprogram on Monday Nights at 8pm. (Superstars? Studio show?)
Step 6. Counterprogram on Thursday nights. (Move Smackdown next year?)