WWE is so wealthy that it is literally incapable at this point of making dumb decisions because there are no consequences to them.
In any other paradigm, the formation of NXT UK is a dumb decision. WWE loses money just by operating it. WALTER, Pete Dunne and the other name stars don't earn significant money, but they don't come cheap, either. WWE, aware that NXT UK is a cold brand, no longer bothers to tour it. There are no tickets to even sell to the public because NXT UK exists entirely out of spite. It's essentially WWE's version of the Bullingdon Club; they burn money in the face of the working class for daring to aspire. Any emerging UK talent was purchased - "That will cost 30 scorched Yemeni schoolchildren, thank you" - to ensure that the competition starved.
WWE created a sub-company, knowing it would die, knowing that it didn't matter, just to ensure the death of the nascent British wrestling scene. NXT UK defines this weird new era in which we exist. WWE killed a company - its own - with the most cynical of motives.
Other wrestling companies died out, or flatlined, because...