Oh, Mimi! All professional wrestling is fake. Even Big Daddy. Fake! Fake! Fake!.
But it's more real than most movies and TV shows. They don't get stuntmen in. When 'Taker does his plancha, he really flings his huge frame out of the ring to the floor below.
How wrestling works: Every match has a winner decided beforehand, and usually an end to the match (called the finish). That's the basic scripting requirements for a wrestling match. Most matches also have booked 'highspots', which are big, impressive set-piece type moves. Then the wrestlers work everything else out between themselves, if you watch closely, you can see them talking to each other in clinches, they also pass messages to each other through the ref occasionally. The level of scripting varies, a spotty match (one with lots of highspots, and little story) will be mostly scripted, matches with more wrestlers tend to be more scripted too. And less experienced wrestlers get more scripting help, as they aren't as experienced in reacting to the crowd. The best wrestlers will sometimes even ignore the booked finish, if they feel that it won't go over well with the crowd.
As to why its exciting, well, its kind of like a combination of gymnastics, proper combat sports, and a soap opera. You might as well ask why people find Corrie exciting. (I'd watch more Corrie if there were more chair shots).
People always trot out the 'but the winner's decided beforehand' which is rubbish. When you're watching a Schwarzenegger movie, you know he's going to win at the end. It doesn't detract from the excitement. In wrestling, you don't know for sure who's going to win. Even if you do (
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Undertaker wins at Wrestlemania shocker!
) there's the journey to get there. And they'll always put a little doubt in your mind.
As to The Rock. I know its gonna be very difficult to get him into the ring again, just because he makes more money in movies than he ever will in wrestling, and all it takes is a botched move and he's paralysed. But surely they could have got him as a special referee in the 'Taker-Edge title match? Or have him run out in the Ref shirt at the inevitable ref bump. That would have been awesome.