Everything is predetermined, and yeah you're spot on... Good wrestling storylines are drawn up months or years in advance and matches are predetermined, and usually scripted down to a specific series of events. But when people do wrestler vs wrestler in threads like this, you're not (usually) talking who would win in a real fight, but rather, who had the best skill... Wrestling athleticism, ability to sell (eg look like you're fighting or getting hurt), ability to tell a story, ability to make your opponent look good, ability to get the fans going, strength of your fictional character, career arc, etc. Some people will also put in real life factors, like Hogan being a racist, Austin abusing his wife, Warrior​ being an asshole, etc. Usually in threads like this I try to look past that, but sometimes you can't separate that.
While wrestlers have a lot to owe to the time they were wrestling and random good fortune, usually the truly talented guys rise to the top and are put up against each other in threads like this.
It's mostly like arguing who was the best James Bond actor or who was the best actor in a mob movie, etc. You realize they're actors playing characters that we're at the fortune of good writers, but you use other characteristics to argue about it.