I was watching a Brother Love shoot just yesterday, and they asked him about this. He said the problem was that they saw a separation of WWF fans and fans of other feds, so it wouldn't make sense to the casual that this guy came in from nowhere and suddenly he's fighting Hogan. He said the 92 RR "made" him with the WWF audience, but Hogan was tied up with Sid.
I haven't seen the matches, but they did actually wrestle in house show matches. Supposedly the response was poor, so I'm not sure if Brother Love is right and that response is what they based it on, or if the matches themselves were not hot.
I *only* would want to see him as a manager or some kind of figurehead role. But I hope he gets some kind of return just to complete the loop in his career.