Regal is pretty solid in that role to be honest, he was very entertaining at it some years ago.
I don't doubt his ability to play the role, I just don't see how this move will appeal to most fans. The reaction The Sandman received when he apparently won showed that the crowd wanted him to be general manager, the lack of any reaction to William Regal after he won showed that the fans are tired of a bad guy authority figure.
Seems like Vince McMahon would rather re-hash old angles with different talent than to take the time to come up with original angles for them.
Desperate times call for desperate actions.
Which begs the question...How long before they pull Hogan out of the mothballs to collect his check and give someone "the rub".