WWE wrestling is real in the literal sense, but is of course staged. It has to be because its sports entertainment, and it follows a particular storyline according to what the fans want to see, or what they feel the fans want to see.
The wrestling, performances, physical training, and everything about it is in fact real. Quite literally the only thing that is not are the results of the matches themselves but the performances are no less genuine and real for it. The only other thing they do is execute the moves in such a way that its less of a bodily risk to the other wrestlers. They obviously have to do this to ensure consistant performances from top wrestlers. Obviously if it were not staged and preped people could really get hurt doing the things they do, even more so than in "real" wresting. And people wouldn't want to see their favorite wrestlers out of action for weeks, months, or even years at a time. Even so, these WWE wrestlers get hurt all the time, you just don't hear about it often enough. What they do is not only physically exhausting, but often a hazard in and of itself. Anything could go wrong at any time, and that does add somewhat of a realism factor to what they do.
(IE- When the Undertaker executes a tombstone piledriver, he braces the wrestler's neck with his inner thighs, so the impact doesn't either a- break his neck, b- paralyze him indefinitely, or worse..c- kill him) (maybe its just better that it kills him. No one wants to be a vegitable the rest of their life).
I'm all for college wrestling and olympic wrestling. While I'm not a fan of it particularly it does have it's place as a sport and several WWE wrestlers made their mark this way (Kurt Angle for example, whom is a real olympic gold medalist for wrestling, his style is based heavily in greco-roman wrestling). And the WWE form has it's place as sports entertainment and it gives a physical display of action not seen in regular mat wrestling. The two are similar but different, and appeal to both similar and different crowds. Its the physical display that links the two together as a medium. Thats what people want to see, and both mediums deliver the goods.
Basically, its like choosing to read a fiction or non-fiction book. Eiether way, its still a book and is just as enjoyable as the other.