It's about spectacle
Wrestling is about being seen. It isn't what it was in the early 1900 because people would go to see the real thing and a match could take as long as 2 or 3 ours. When intrest started to fade a group of pramoters formed the Gold-Dust-Trio(knoe Dustin Rennelds was not a member). They turned wrestling into more of the show you see today, but the championship bouts were still real. Then came Ed "strangler" Louis, considered to be the best wrestler ever. He was so good that her could win or lose the belt when he chose to. This added to the
"fake" aspect more because he threw the matches he lost.
Over the years territories were formed, and guys like "Nature Boy" Buddy Rodgers, Killer Kawolsky, and the first "Gorgeos" George came on the seen. Right up until the late 80's though, vetrins wouldn't think twice about beating you to a pulp during a match. Hulk Hogan said Andre used to slap him around pretty good, and he would vomit on his way to arenas when he knew he would be facing the Giant that night.
Now, unfortunetly, wrestling is more show then sport (or athletics). sure you have to be athletic to do the stuff they do, and if you don't think you have to be tough to take those fall, well guess again. What makes wrestling so unbeleavable is the fact that all thease high flying types will knock a guy down 2 seconds into the match and he will pull of a big move from the top turnbuckle. Hello, when Rick Steamboat, Randy Savage, The Rocker, or any of the high flyers of the 80's and early 90's wanted to pull of there arail move they still had to "beat" up on the other guy for a little bit.
In closing, wrestling is about Good vs Evil, although now the bad guys (Steve Austin) are getting cheared, while the good guys (Kurt Angle) get booed. Pimps are cheered, and and proprietors of virtue are booed. As for the "Fakeness" of it all? I was in the forums chat room when a member said "You know its all fake right." a second memeber said "Yeh...you know Martin Sheen isn't realy the Presadent right." 😛